KUALA LUMPUR (Oct 10): Shares in integrated engineering services provider Serba Dinamik Holdings Bhd rose 4.29% in active trade today after the group inked a joint venture (JV) to set up and operate a chlorine skid mounted chlor-alkali plant in Tanzania, which marks its expansion into the African continent.

At 11.10am, Serba Dinamik was up 10 sen to RM2.43 with 2.94 million shares changing hands, for a market capitalisation of RM3.18 billion.

In a statement yesterday, Serba Dinamik said its wholly-owned unit Serba Dinamik International Ltd (SDIL) had inked a JV agreement with a Tanzanian company, water-related solution supplier Junaco (T) Ltd (JTL), for the development of the 45-tonnes-per-day plant that will be located on an industrial plot in the Msufini Area, in the Kibaha District Coast Region.

To undertake the project, Serba Dinamik and its partner will set up a special purpose vehicle in Dubai known as Msufini LLC, which will fully own the plant. SDIL will have a 25% stake in Msufini, while JTL will own the remainder.

"Through this JV agreement, we will be able to expand our business into a new region that is Tanzania, which will ultimately expand our brand recognition into Africa for the first time. We are proud to be able to participate in the engineering, procurement, construction and commissioning (EPCC) works, which are valued at approximately RM295.26 million.

"Upon completion of the EPCC works and as part of the JV agreement, SDIL will be appointed an operation and maintenance (O&M) operator under the O&M agreement for 10 years plus additional five years, which will enable SDIL to benefit from a steady income flow in the long term," said Serba Dinamik group managing director/group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah.

Serba Dinamik expects the JV agreement to be completed by the first quarter of 2018.