PETALING JAYA: Sapura Resources Bhd (SRB) has entered into a conditional subscription and joint venture (JV) agreement with Singapore-based MTU Asia Pte Ltd for the diversification into the sale and service of products, engines and parts, and provision of related value-added services.
According to SRB’s filing with Bursa Malaysia, SRB and its subsidiary SRB One Sdn Bhd along with MTU and its subsidiary MTU Power Systems Sdn Bhd (MPS) will collaborate to undertake the sale and service of original equipment packaging solutions in marine (both naval and commercial), rail, construction and industrial, mining, agriculture, oil and gas, and power generation market sectors in Malaysia.
This follows the memorandum of understanding entered between the parties in March.
MTU is part of the core business of Rolls-Royce Power Systems AG (RRPS), which is a division of Rolls-Royce plc. RRPS provides pioneering, integrated solutions for the marine and infrastructure sectors and focuses on digitalisation and electrification.
MPS will be appointed as the sole distributor of RRPS in Malaysia to, among others, sell and service certain products and parts stipulated in the distributor agreement.
The final shareholding structure of MPS shall consist of SRB One holding 51% equity, while MTU shall retain the remaining 49% stake in the JV company.
SRB anticipates that the proposed JV business may contribute 25% or more of its consolidated net profits in the near future and/or result in the diversion of 25% or more of the consolidated net assets.
