LOYZ Energy Limited has on Thursday signed a memorandum of understanding (MOU) with investment firm Arctos Investments to form a joint venture company named FIT Global Pte Ltd with a focus on fund management, investments and trading.
The independent exploration and production upstream energy player said that it is a bid by the group to diversify its business beyond investment holding of earnings accretive businesses into investment management, such as participating in pre-initial public offerings and/or co-investment opportunities for capital gains, and trading, as well as managing external funds through the proposed joint venture.
Loyz Energy will contribute the entire amount in cash for the incorporation of FIT with an issued and paid-up share capital of S$1 million, said the group in a Singapore Exchange filing on Friday.
Arctos Investments will contribute by ways of its network, team of investment and trading professionals, and risk management expertise.
As part of Arctos Investments' contribution, Loyz Energy shall also issue such number of fully paid-up new ordinary shares in its capital at an issue price to be agreed, amounting to S$1 million to Arctos Investments.