TCHONG

0.860

+0.01 (+1.2%)

MEMORANDUM OF UNDERSTANDING UPDATES ON MEMORANDUM OF UNDERSTANDING BETWEEN TC MOTOR VIETNAM CO., LTD., AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF TAN CHONG MOTOR HOLDINGS BERHAD, AND XIAMEN KING LONG UNITED AUTOMOTIVE INDUSTRY CO. LTD.

TAN CHONG MOTOR HOLDINGS BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
UPDATES ON MEMORANDUM OF UNDERSTANDING BETWEEN TC MOTOR VIETNAM CO., LTD., AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF TAN CHONG MOTOR HOLDINGS BERHAD, AND XIAMEN KING LONG UNITED AUTOMOTIVE INDUSTRY CO. LTD.

We refer to our announcements dated 19 October 2020, 18 January 2021 and 16 April 2021 pertaining to the Memorandum of Understanding (“MOU”) dated 19 October 2020 executed by TC Motor Vietnam Co., Ltd. (“TCMV”), an indirect wholly-owned subsidiary of Tan Chong Motor Holdings Berhad (“Company”), with Xiamen King Long United Automotive Industry Co. Ltd. (“King Long”), a company incorporated in China in accordance with the laws of the People’s Republic of China (“P.R. China”) and having its head office at No. 9, Kinglong Road, Jimei District, Xiamen 361023, Fujian Province, P.R. China, to facilitate the commencement of discussions and negotiations for the appointment of TCMV as the sole and exclusive distributor of King Long KINGO microbus model (“Product”) in Vietnam in both complete-built-up (“CBU”) and complete-knocked-down (“CKD”) forms (“Proposed Collaboration”).

 

As announced, the MOU will expire on 18 October 2021. 

 

The Board of Directors of the Company wishes to announce that the feasibility study on the Proposed Collaboration will be completed soon. Preliminary findings indicate there are certain additional investments costs to be incurred in order to comply with the Vietnamese market regulations. TCMV will ascertain whether it is economically viable for the Proposed Collaboration to continue or to be terminated.  Further announcement will be made thereafter.  

 

This announcement is dated 15 July 2021.






Announcement Info

Company Name TAN CHONG MOTOR HOLDINGS BERHAD
Stock Name TCHONG
Date Announced 15 Jul 2021
Category General Announcement for PLC
Reference Number GA1-14072021-00094