By May Kunmakara / Khmer Times On December 6, 2016
The privately owned Tanncam Investment Company has bought a 30 percent stake in Cambodian Investment Management and related group companies as part of a shareholder restructuring.
The deal, signed on Sunday, involves new equity financing in which Tanncam Investment will own 30 percent of each company.
The related group companies are Cambodian Investment Management Insurance Agent, Premium Human Resources, Dynamo Innovative Digital Advertising, and Phnom Penh BG Serviced Offices.
Group chief executive Anthony Galliano told Khmer Times yesterday that the new shareholder will join forces with existing ones to make the company stronger in the industry.
“We have organically grown our businesses since 2009 and reinvested free cash into product development and created new companies to expand into new industries,” Mr. Galliano said.
“We believe there is significant opportunity to greatly accelerate business growth in Cambodia and neighboring countries and therefore entered into the new equity financing transaction which will support our ambitions and strategy,” he said.
Mr. Galliano however did not reveal the cost of the 30 percent stake in Cambodian Investment Management.
A spokesperson from Tanncam Investment said the diverse business of Cambodian Investment Management and its related businesses will make the Tanncam deal even more successful.
“We are strong believers in the growth prospects for Cambodia and neighboring countries, and the transportability of the group’s full-service model beyond the borders of South-east Asia. Cambodian Investment Management has demonstrated coherency and success in its growth strategy, prudence in use of capital, and commitment to partnering with the customer.
“As a new shareholder, we will contribute to accelerating the group’s expansion and provide new financial resources for major enhancements to existing businesses and launching new markets.”
A new holding company will be formed in which the new uses of capital will be allocated. The transaction is expected to be completed in January.
Mr. Galliano said that with the new source of funds, he will invest in the accounting, tax, and human resource sectors of the business and greatly leverage investment in the existing digital business capabilities in these areas.