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SCMP Reporter

A DEAL worth US$1.2 billion to build a power station in Vietnam has put MBf Asia Capital Corporation (MACC) on the Asian investment map in a big way.

  But the power station is merely one of many major projects in the company's ambitious plans to expand throughout the region as the flagship of its Malaysian parent's international operations.

  Parent MBf, which is listed on the Kuala Lumpur Stock Exchange, sees itself as the largest diversified financial services group in Malaysia with an emphasis on entrepreneurial spirit.

  But because of limits to growth potential in its home market, MBf has been looking to tap, through MACC, into the wider Asian arena and its increasing affluent middle class, and the mass of personal and corporate wealth it represents.

  The expansion plan began a year ago when MACC set up shop in Hong Kong as a wholly-owned subsidiary of MBf.

  But Hong Kong investors keen to take a stake in the company's operations may be able to do so within two years, because it plans to be listed on the Hong Kong stock market.

  Following good comments by American stock analysts during a recent visit to Hong Kong and Malaysia, MBf and MACC have found themselves increasingly in the investor's spotlight.

  According to president and chief executive of MACC Leslie Merszei, the company was set up to duplicate and expand what MBf has been doing in Malaysia.

  ''We provide varied non-banking niche financial services, but, with the whole of Asia in which to grow, MACC is certain to surpass the size of its parent company.''   MACC concentrates on three core product areas, the most important being consumer and middle-market financial services. This sector includes consumer financing, leasing, factoring and credit cards.

  The second area is asset management-related business aimed at the middle market area - the recent acquisition Connaught Strategic Holdings being an example of this. Connaught, which is itself already on the acquisition trail, is tipped by Mr Merszei to develop into MACC's flagship.

  Then there is the regional merchant banking face of the group. This includes cross-border mergers and acquisitions - aimed at medium-sized companies - and infrastructural projects, of which the new power project in Vietnam is an example.

  Mr Merszei insists MACC is a niche player and that therein lie its strengths.

  ''In our merchant banking operations for example, MACC is not competing with Peregrine or Wardleys. It is not interested in underwriting and the like,'' he said.

  ''We are trying to put deals together with our knowledge and contacts in Asia, and then taking a fee for the work.''   The engine of MACC's growth, however, is its consumer and middle-market financial services where it provides financial expertise for this growing social group and the small businesses it creates.

  Like every other business in the region, China looms large in MACC's plans. Its recent purchase of a one per cent stake in the New China Hong Kong Group is an indication of not only the group's interest in the mainland, but the steps it is taking to improve contacts there.

  With its MBf backing, MACC is also already setting up operations in Indonesia, the Pacific Islands, Australia and the United States.

  He conceded the diversity of the company's interests, but defended the position, saying there was a natural synergy within the group.

  ''The company will not turn down opportunities. When the power station deal in Vietnam almost fell through after one of our partners pulled out, it would have been easy to have shrugged our shoulders and headed for the door,'' he said.

  ''But it is important to be properly opportunistic, and through these opportunities reap substantial rewards.''   American investment analysts such as Adrian Day are already singing the praises of MBf Holdings as a suitable Asia play, and Mr Merszei confidently insists MACC is primed and ready to benefit from the extraordinary growth of the Asian region.



Vietnam deal powers MACC expansion