Gas Malaysia shares fall despite news of JV with Sime Darby Offshore Engineering

PETALING JAYA: Gas Malaysia Bhd’s share price fell further this morning despite news of its joint venture (JV) with Sime Darby Offshore Engineering Sdn Bhd (SDOE).
At 11.08am, its share price fell 0.36% or 1 sen to RM2.75 with a total of 67,800 shares changing hands. Yesterday, its share price fell 0.36% or 1 sen to close at RM2.76 with a total of 198,600 shares traded.
Gas Malaysia Venture 1 Sdn Bhd (GMV1), a wholly-owned subsidiary of Gas Malaysia Ventures Sdn Bhd, which in turn is a wholly-owned subsidiary of Gas Malaysia, entered into a joint-venture agreement (JVA) with SDOE yesterday.
GMV1 and SDOE will incorporate a JV company to provide electricity, steam, chilled water, hot water, hot air and/or any other utilities via combined heat and power (CHP) system to industries in Malaysia.
The move will see Gas Malaysia diversify from gas distribution to energy business.
GMV1 will hold a 70% stake and SDOE the remaining 30% in the JV company which will have a paid-up capital of RM5 million. The JV company will have at least four directors, of which three will be nominated by GMV1 and one nominated by SDOE.