KUALA LUMPUR (April 20): Bintai Kinden Corp Bhd's subsidiary Bintai Energy Sdn Bhd has been appointed as an exclusive distributor for pipes and valves supplied by Gerab Group in Malaysia and Brunei.

In a statement to Bursa Malaysia, Bintai Kinden said Bintai Energy on Wednesday (April 20) entered into a distribution agreement with Gerab National Enterprises LLC for the distribution of pipes and valves for oil and gas business supplied by the latter.

According to Bintai Kinden, Gerab is the leading bulk stockist and supplier of seamless pipes, welded pipes and allied components in the Middle East for oil and gas, power generation, water desalination, petrochemical process, mining, construction and shipbuilding industries worldwide.

Under the agreement, Gerab will provide marketing, promotional and other information in relation to the products to support Bintai Energy in managing its distributorship during or after delivery of the products.

According to Bintai Kinden, the agreement is for a one-year period and subject to the terms therein, unless termination notice in writing is given by either party 30 days prior to the termination.

Bintai Kinden's executive director Noor Azri Noor Azerai said the agreement will enable Bintai Energy and Gerab to render their full cooperation within their framework of their domestic laws, rules, regulations and policies to market and sell the products to meet the mutually agreed upon sales goals for future revenue growth of Bintai Group.

"Having considered all the relevant aspects including the rationale and effects of the agreement, the board of directors of Bintai is of the opinion that the agreement is in the best interests of Bintai Group as it ventures into oil and gas business," he added.

The company said the agreement is not expected to have any material effect on the issued and paid-up share capital of Bintai Kinden but is expected to contribute positively towards the future earnings of the group.

At the 12.30pm break, Bintai Kinden shares rose one sen or 7.69% to 14 sen, with a market capitalisation of RM103.06 million. It saw some 8.24 million shares traded.