Eita Resources forms 70:30 JV with Royal Malaysia Police Cooperative

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KUALA LUMPUR (Jan 29): Eita Resources Bhd has formed a 70:30 joint venture (JV) with Royal Malaysia Police Cooperative Bhd’s unit KOP Mantap Bhd for the provision of service, maintenance, repair, upgrade and modernise lifts, escalators and elevators to third parties.

In a filing with Bursa Malaysia, Eita said its wholly-owned subsidiary Eita Elevator (M) Sdn Bhd (EEM) has entered into a shareholders agreement with KOP Mantap for the formation of the JV called Eita KOP Sdn Bhd.

Under the agreement, KOP Mantap is responsible for securing jobs or contracts from the Government or the Royal Malaysia Police or other such bodies and agencies at an initial estimated contract value of RM100 million.

In return, EEM will be tasked to manage the JV day-to-day operations, provide relevant training and syllabus in relation to lift and escalator studies to students of Kolej Unikop, and to provide job opportunities to the graduates.

EEM also agrees to provide scholarships to five eligible children of police personnel with a value of RM20,000 each.

Eita’s share price closed unchanged at RM1.38 today, giving it a market capitalisation of RM179.39 million.