ZICO Malaysia to sell 49 percent of ZICO Trust to Riau Capital

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ZICO Holdings’ wholly owned direct subsidiary ZICO Malaysia entered a deal to sell 49 percent of ZICO Trust to Riau Capital for 9.6 million ringgit, the company said in a filing to SGX Friday.

ZICO Trust operates as a Labuan trust providing corporate secretarial, trust company and trustee services.

Riau Capital is a family-owned investment company, with holdings including a joint venture with Carte Blanche Family Office AG (CBFO), an independent, family-owned multi-family office platform; it is incorporated as an investment holding company in Singapore and provides investment services to clients intending to invest in Southeast Asia

“The proposed disposal is driven by the company’s decision to pivot towards and focus on the growing wealth management industry in Asia, leveraging on the group’s trust and asset management services in addition to the usual incorporation and nominee services,” ZICO said in the statement.

“In this regard, the company believes that the purchaser, with its established network with the likes of wealth management companies in Europe, can add value to the growth of the sale subsidiary, and benefit the company’s shareholders and stakeholders,” the company said.

In addition, ZICO noted ZICO Trust has faced increasing business challenges, and as part of reviewing its strategy was the decision to pivot toward Asia’s wealth management industry.

The net proceeds will be used for general working capital, ZICO said.