KUALA LUMPUR (Dec 4): Stainless steel cookware manufacturer Ni Hsin Resources Bhd has inked a Memorandum of Understanding (MoU) with Helios Photovoltaic Sdn Bhd, which may involve the eventual acquisition of Helios by Ni Hsin.

In a press statement today, Ni Hsin said the MoU was for both parties to enter into mutual discussions relating to a proposed participation by Ni Hsin in the business and growth of Helios.

“Under the MoU, Ni Hsin and Helios have jointly agreed to commence discussions and negotiations exclusively in good faith the detailed on the structures and terms of the proposal which may involve the acquisition of the entire issue and paid-up share capital of Helios by the company, or such other mode of investment as may be mutually agreed upon,” it said.

However, there is no capital commitment on Ni Hsin at this stage except for expenses expected in undertaking due diligence in relation to the proposal, it said.

Both parties are expected to finalise and enter into definitive agreements within six months upon completion of the discussions and negotiations, read the statement.

The MoU is in line with Ni Hsin’s expansion plans and would be valid for a period of six months, unless extended by both parties.

Helios provides vertically integrated solutions and services relating to photovoltaic systems focusing on the downstream segment of the photovoltaic value chain.

Its business activities include conception, development, construction and operations of photovoltaic systems.

The unlisted firm had carried out numerous solar projects for the Federal Government including for the Ministry of Education and Ministry of Rural and Regional Development, semi government bodies such as Universiti Malaysia Sarawak (UNIMAS), and private sector companies including SP Setia Berhad, it added.

Ni Hsin’s counter rose 10.39% today to settle at 42.5 sen, with some 18.98 million shares changing hands. Its market capitalisation was at RM95.85 million.