KUALA LUMPUR: Seremban Engineering Bhd
(SEB) has entered into a joint venture (JV) with Negri Sembilan’s investment arm NS Corp to develop three parcels of land measuring 28 acres in the Port Dickson area, including one where the Jetty Arang is located.
In a filing with Bursa Malaysia, SEB said it would hold an 80% stake in the SPV while NS Corp will hold the remaining 20%.
Both parties have also entered into a subscription and shareholders agreement (SHA) for the incorporation of a special purpose vehicle (SPV) to implement the joint venture.
The primary objective of the JV would be to carry out the development projects on the concession lands - including building all necessary infrastructure and public utilities - as well as attempting to undertake jetty operations for exports and imports, warehousing, tank farms and related logistics.
SEB will also be in charge of partnering with experienced port services operators for the operation of Jetty Arang during the concession period.
NS Corp will be responsible for the liaising and procuring of approvals from the Negri Sembilan state government for the development projects; as well as procuring the approvals and licenses for the layout, building plans and development plans, on top of all other construction and development approvals.
The group intends to fund the JV either through internally-generated funds, bank borrowings and/or a combination of both.
“The JV aligns with SEB's strategic objective of expanding and diversifying its business operations for sustainable and profitable growth. It aims to diversify the company's income sources, thus reducing potential negative impacts on its traditional business industry.
“Furthermore, if the JV materialises, it will create opportunities for the Company to enhance its financial earnings through the successful implementation of the development projects,” it said.
