Posted on 25 Oct 2016
Ajiya Bhd has teamed up with YKGI Holdings Bhd to explore areas where they can synergise and optimise both companies’ manufacturing resources in Sabah and Sarawak to enhance their revenue and profitability via a joint-venture, business combination or any other form of business arrangement.
In a filing with Bursa Malaysia yesterday, Ajiya said it last Friday signed a memorandum of understanding (MoU) with YKGI with the intention of establishing a long-term strategic business partnership between both companies.
“The MoU allows both companies to form the basis of consensus to examine the feasibility of the proposed partnership. We shall explore business opportunities and establish a cooperative relationship that will benefit both parties. We believe that the MoU is in the best interests of Ajiya and its subsidiaries,” Ajiya group managing director Datuk Chan Wah Kiang said in a statement yesterday.
The MoU is valid for a period of one year.
Chan said that the collaboration will open up business opportunities for Ajiya in Sabah and Sarawak by leveraging the extensive network of YKGI, adding that this will further complement Ajiya’s current manufacturing business, in terms of improving its earnings visibility.
“Both parties have agreed to promptly negotiate exclusively in good faith, the detailed terms and conditions of the proposed partnership. This is with the intention to finalise and enter into definitive agreement(s) or such other similar agreement(s) as necessary, to affect the proposed partnership in form and substance mutually satisfactory to the parties,” he said.
Ajiya shares closed 0.5 sen or 0.63% lower at 78.5 sen yesterday, with a market capitalisation of RM239.1 million.
YKGI’s stock, meanwhile, closed 0.5 sen or 1.47% higher at 34.5 sen, with a market capitalisation of RM120.18 million.
