Chinese private equity group Jingyi Group, looking to make its first foray into Australia through Melbourne financial services group TST Partners, has entered a proposed agreement to buy out ASX-listed electronics group TTA and its sole warehouse/office building in Thomastown in Melbourne.
While the $3.2 million commercial property at 75 Northgate Drive, Thomastown building will become a passive investment, the key part of the deal, if approved by TTA’s shareholders, is the TTA “listed shell” which could be used to backdoor list TST Partners.
TTA’s main business, TEAC electronics, will continue as a non-listed business.
The transaction was announced on the Singapore Exchange last week, where TTA’s ultimate parent, TT International is listed.
TST chief executive Francis Gu was not able to comment further on the transaction but said Jingyi and TST had plans to establish a funds management business in Australia.
Capital would be sought from China and South East Asia and held in managed investment schemes, Mr Gu said.
The funds management division will initially operate three funds across property development, mortgage backed securities, and equities and fixed income securities.
TST Partners will also access Jingyi’s resources in China to drive business in Australia.
The company also has a licence from Chinese online giant Tencent to roll out “WeChat Wallet” in Australia, a cashless payment system using the popular social media application WeChat and is in the midst of obtaining an Australian financial services (AFS) licence.
These plans are pending until the TTA delisting is completed.
Shanghai-based Jingyi Group was founded in 2011. It focuses on industrial investment and asset management and has invested in automobile trade, real estate development, photoelectric high tech and international trade.
The group’s managing director Xianyou Kong said the company did not want to focus mainly real estate, a staple investment class for Chinese investors. Financial and legal services to service Asian investors in Australia, were also good investments.
TST Partners provides accounting, legal, finance brokering and corporate advisory services in Melbourne and was established in 1988.