Frontier Services Group – Strategy Update & Capital Raise
Frontier Services Group (FSG, Company or Group), the leading service provider of integrated security, insurance and logistics solutions for companies operating in frontier markets, today provides an update on its strategy and announces a significant capital raise and expansion of its shareholders base.
Highlights
- Total new money to be raised:
HK$832 million (US$ 107 million ) - CITIC increasing its shareholding from 15.84% to 28.4%
- China
Taiping joining the shareholder register with 7.48% - Company positioned optimally to become the leading integrated security, logistics and insurance service provider in the market, active in 20 countries across the globe
- Funds will be utilized to expand global office footprint, expand teams, grow asset base and support operational working capital requirements for projects across the Belt & Road.
Strategy Update
Since FSG's inception in 2014, the firm has been active in supporting companies operating in frontier markets overcome complex security and logistics challenges. In 2016, FSG clearly defined its strategy as integrated security, logistics and insurance service solutions and aligned with the Belt & Road initiative. Moreover, the Group has identified security as a critical service offering for companies supporting the Belt & Road initiative to guarantee the safety of their staff and success of their projects. Over the past 12 months, FSG has expanded significantly its global footprint of offices in key markets, portfolio of security licenses, world-class training facilities and built a team of first-class multinational, multilingual security professionals.
The Group proudly announces today, subject to Shareholder approval, the increased investment from
Security
With the proceeds from the proposed capital raise, the Company intends to strengthen its security capabilities by establishing training facilities for security personnel, adding new security licenses, expanding its international team, and purchasing equipment and vehicles to support operations.
In 2017, the group invested in the
FSG is positioned to become the leading provider of international standard security services using multi-national, multi-lingual professionals working together across projects in each of its target markets. The group will continue to expand its portfolio of security licenses as well as procuring the vehicles and equipment necessary to support operations.
Logistics
The Group's logistics business, which began in 2013, has expanded from
The Group maintains a fleet of over 20 aircrafts with aviation platforms in
Insurance
With the proceeds from the capital raise, FSG will look to expand its team of international insurance professionals and integrate them into key regional offices in target markets. The Group's insurance division will complement its security and logistics services as part of a complete, integrated risk management solution. Insurance by itself helps with the impact of eventualities but mitigating risks is an essential part of risk management. The risks and challenges of frontier markets have unique challenges with no off-the-shelf solutions.
FSG looks to approach projects as a whole, assessing risk and creating a risk management solution that integrates design, training, physical and technical measures and transportation combined with insurance. With strategic partnerships with leading Chinese domestic and international insurers, the Group's insurance team develops unique and innovative insurance services. Leveraging the Group's full-spectrum capabilities in security, logistics, and insurance services into a complete risk management solution is a new and innovative approach to the traditional, reactive practice of companies operating in frontier markets. The Group benefits from having local teams able to meet with clients face to face, understand their needs and create customized service solutions while being able to access the global insurance market. This truly differentiates FSG amongst other service providers. The addition of China Taiping Insurance, will only strengthen the Group's capabilities and ability to offer unique insurance service solutions to its clients.
The transaction is still subject to shareholder approval which shall be decided at a Shareholders General Meeting (SGM) at a date to be determined.
The full announcement posted to the
http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0302/LTN201803021658.pdf
About Frontier Services Group
Frontier Services Group Limited ("FSG") (SEHK: 00500) is a publicly listed company on the
Media enquiries:
International media - contact
E: [email protected]
T: + 44-7741-052-506/+44-7867-339-875
SOURCE Frontier Services Group
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