PETALING JAYA: Engineering services provider Seremban Engineering Bhd
(SEB) has entered into a joint venture (JV) with Negri Sembilan state statutory body NS Corp to develop three pieces of land measuring 28 acres in the Port Dickson area, including one where the Jetty Arang is located. SEB will hold an 80% equity stake in the yet-to-be-named special-purpose JV company, with the balance belonging to NS Corp.
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.Aside from conducting a feasibility study following the JV agreement, SEB’s primary roles include arranging the financing of the development projects and to procure the JV company to undertake and complete the said development projects.
It also includes managing, overseeing and undertaking the carrying out of the development projects in accordance with the development plan to be approved by the board of the JV company and ensuring that the projects shall be completed within the development period, targeted to be the second quarter of 2024.
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.
In a filing with Bursa Malaysia announcing the JV yesterday, SEB said the JV aligns with its strategic objective of expanding and diversifying its business operations for sustainable and profitable growth.
“It (the JV) 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,” SEB said.
The company said it intends to fund the JV either through internally generated funds, bank borrowings or a combination of the two methods, although nothing has been finalised.
It adds: “The effect of the JV on the gearing of the group is dependent on the fulfillment of the conditions subsequent and are not able to be ascertained as at the date of this announcement.”
While the JV itself does not require the approval of the shareholders of SEB or any regulatory authorities, in line with the listing requirements of Bursa Malaysia, SEB said it will be seeking for the approval of its shareholders for diversification of its operations into project development activities once all the conditions subsequent are fulfilled within the periods stipulated.
