Boilermech to commercialise CSIRO's oil extraction technology

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KUALA LUMPUR (April 21): Boilermech Holdings Bhd has inked a deal with the Commonwealth Scientific and Industrial Research Organisation, Australia (CSIRO), to commercialise the latter's patented oil extraction technology.
In a filing with Bursa Malaysia, Boilermech said its wholly-owned unit Boilermech Oretech Sdn Bhd (BOSB) has entered into a commercialisation agreement with CSIRO today, for the commercialisation by BOSB of certain CSIRO patents, patent applications and know-how in oil extraction efficiency.
In return for the technology transfer, an undisclosed fee will be paid to CSIRO, said Boilermech (fundamental: 2.3; valuation: 1.5).
Boilermech said it shall assume responsibility for BOSB, if the latter fails to fulfil the obligations under the agreement according to a parent company deed which the former signed on even date with CSIRO and BOSB.
It said the term of the agreement will last for 15 years starting today, unless terminated earlier in accordance with the said agreement.
The boiler manufacturer said the technology transfer will provide an opportunity to make further inroads into the biomass renewable energy sector, and hence broaden its scope of business activities and enhance its profitability.
“While the technology is new, the directors are of the opinion that it will enhance the future prospects of the group,” it added.
Boilermech shares ended unchanged at RM1.56 today, giving it a market capitalisation of RM799.8 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)