SMART PARTNERSHIP FRANCHISE SCHEME

This scheme not only enables UMBs to own equity in non-Bumiputera companies, but it also allows non-Bumiputera companies to partner with PNS in financing their business

Criteria Of Target Companies

• Registered with Registrar of Franchise (ROF) and Malaysian Franchise Association (MFA) as a franchisor / master franchisee / franchisee to a foreign franchisor
• Minimum of 2 years' uninterrupted Profit After Tax (PAT) track record
• Minimum shareholders' funds of RM3.0 million
• Minimum PAT of RM500,000 for recent financial year
• UMB must be involved in the management and operations of target company
• UMB must contribute a minimum of 5% of total investment costs

Investment Structure

• To subscribe Ordinary Shares only or combination of Ordinary Shares and 7% Cumulative Redeemable Convertible Preference Shares (CRCPS)
  

Size of Investment

• Ordinary Shares: minimum of 30% and maximum of 49% equity interest in target company or RM10 million, whichever is lower
  
• Preference Shares: minimum of RM1 million and maximum of RM5 million, subject to a gearing ratio of 2.0 times

Tenure Of Investment

• Ordinary Shares: Maximum of 4 years.
• Preference Shares: Maximum of 5 years