KUALA LUMPUR (March 23): Technology and investment holding company Fintec Global Bhd has inked an agreement to supply approximately RM300 million worth of biodiesel-related products to Malaysia and other countries.

In a filing with Bursa Malaysia today, it said that its wholly-owned subsidiary Eco-Sponge Sdn Bhd (ECS) has signed a collaborative agreement with Green Ocean Corp Bhd’s unit, Ace Edible Oil Industries Sdn Bhd (AEOI).

Green Ocean is involved in palm oil, renewable and green products/services business segments. Its wholly-owned subsidiary, AEOI, is principally involved in palm kernel crushing, refining of palm oil and palm kernel oil and producing palm kernel expellers as commodities for sales.

Under this collaboration agreement, Green Ocean will supply biodiesel and biofuel related products to potential customers, as well as customers procured by Fintec.

“Green Ocean will supply a projected amount of 150,000 metric tons of biodiesel per annum for an estimated total value of approximately RM300 million to ECS, whereas Fintec will be responsible for the promotion and marketing activities, supply chain management, as well as market share expansion initiatives in Malaysia for a tenure of five years from the execution date of the collaborative agreement,” said Fintec.

It added that this agreement is in line with its business strategy to expand its footprint in the biodiesel and biofuel industry, as well as to generate a positive return to the group.

Shares of Fintec Global were unchanged at seven sen today, valuing the group at RM241.15 million. It saw some 23.05 million shares transacted.

Green Ocean was also unchanged at six sen, giving it a market value of RM90.17 million.