KUALA LUMPUR (May 27): LEAP market-listed Nova Pharma Solutions Bhd (NPS) has entered into a joint venture cum shareholders agreement (JVSA) with Acara Juara Sdn Bhd (AJ) to jointly invest in, establish, and operate a total engineering solutions business.

According to NPS' bourse filing today, the two parties will establish a special purpose vehicle (SPV) to be incorporated later called Nova HiTech Solutions Sdn Bhd or any other name as may be determined by both companies.

"The proposed JVSA would enable NPS to further expand its existing business through undertaking of turnkey or engineering, procurement, construction and commissioning (EPCC) projects.

"The proposed JVSA is expected to generate new income stream for NPS with each party contributing relevant expertise and skill sets to the SPV which will enhance NPS' capabilities in advanced technology facilities setup," said the company.

Under the agreement, NPS will control 51% of the SPV while AJ will control the balance 49%. Both parties will be making a capital contribution of RM100,000 within 30 days of the date of agreement.

NPS will be promoting the SPV as a turnkey or engineering, procurement, construction and commissioning (EPCC) outfit in Taiwan and the Southeast Asia region, while AJ will contribute by leading the execution of projects secured by the SPV, spearheading the project management areas and promoting the SPV as a turnkey or EPCC outfit to provide total engineering solutions services for advanced technology facilities setup for industries including healthcare, pharmaceutical and biotechnology.

The two parties have also agreed that in the event NPS transfers its listing from the LEAP Market or if it conducts a new listing exercise on the ACE Market or Main Market of the bourse, AJ shall sell its entire holding in the SPV to NPS.

NPS shares were untraded today. The counter last traded at 35 sen on April 25, giving it a market capitalisation of RM52.15 million.