China firm buys 9.09% stake in Jadi Imaging

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KUALA LUMPUR (Aug 21): China-listed Ninestar Corp's wholly-owned subsidiary Static Control Holdings Ltd (SCC) has acquired an approximately 9.09% stake in Jadi Imaging Holdings Bhd following the completion of a share subscription agreement.

Jadi, which manufactures toners for laser printers and photocopiers, said in a statement yesterday SCC holds some 9.09% of the enlarged equity base in Jadi and will have a board representation in Jadi to contribute to closer business cooperation between the companies.

Together with the share subscription deal, Jadi and SCC simultaneously signed a supply agreement under which SCC committed to buying a quantity of chemical toners manufactured by Jadi for three years, starting from April 2020.

Jadi said the supply agreement also offers Jadi the opportunity to supply conventional toners to Ninestar and its subsidiaries.

"The subscription agreement and supply agreement are important milestones for a long-term strategic collaboration between Jadi and Ninestar and its subsidiaries.

"It provides a platform for both parties to leverage on each other's technical knowledge, expertise and experience for expansion and growth in the key areas. Jadi's board is confident that the investment from this strategic collaboration will provide opportunities to diversify into many exciting new areas, in particular, the possibilities of cooperating further in OEM (original equipment manufacturer) contracts and developing new business streams with less competition and higher profit margin," Jadi said.