Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Oct 24): 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 today, Ajiya said it has on Oct 21 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 the MOU is in the best interest of Ajiya and its subsidiaries," Ajiya group managing director Datuk Chan Wah Kiang said in a statement today.

The MOU is valid for a period of one year.

Chan said the collaboration will open up business opportunities for Ajiya in Sabah and Sarawak, by leveraging on 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 of finalising and entering 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 0.6% lower at 78.5 sen today, for a market capitalisation of RM239.1 million. YKGI's stock, meanwhile, closed 0.5 sen or 1.5% higher at 34.5 sen, for a market capitalisation of RM120.18 million.

      Print
      Text Size
      Share