Coastal Contracts unit, Polaris set up JV company

PETALING JAYA: Coastal Contracts Bhd’s wholly owned subsidiary Coastal Drilling Pte Ltd has entered into a joint-venture agreement with Polaris Holdings SARL to set up CN Energy Holdings Pte Ltd to pursue opportunities in offshore gas treatment projects worldwide.

Coastal Drilling and Polaris will have equal shareholding in the JV company (JVC). Coastal Drilling’s cash outlay for the investment in the JVC is S$5,000 (RM15,206) and will be satisfied with internally generated funds.

“The parties seek to optimise the combined strengths of each party in their respective fields to embark on international projects,” Coastal Contracts said in a stock exchange filing yesterday.

The proposed inverstment will not have any material effect on the group’s consolidated net assets per share, earnings per share and gearing in respect of the financial year ending June 30, 2017.