KUALA LUMPUR (Aug 19): PUC Bhd has aborted plans to collaborate with China's Shenzhen Jiedian Technology Co Ltd to enter into the portable battery rental market in Malaysia.
In December last year, PUC's wholly-owned subsidiary Presto Universe Sdn Bhd (PUSB) had entered into a memorandum of understanding (MoU) with JieDian for the purpose.
In a bourse filing today, PUC said PUSB and JieDian had mutually agreed to terminate the MoU with immediate effect in view that PUC has entered into a separate joint venture (JV) agreement with a company related to Chinese electronics maker Anker Innovations Ltd to undertake the business.
"The termination will not have any material effect on the issued and paid-up share capital, substantial shareholders’ shareholdings, earnings, net assets and gearing of the company and its subsidiaries," it added.
Jiedian specialises in providing convenient, quick and easy to use shared portable battery rental services to the mobile device users. The company has high share of that market in China.
In a separate filing, PUC said it has signed a JV agreement with Hong Kong-based Instpower Co Ltd and Cheng Lin Holdings Sdn Bhd to undertake and engage in the power bank rental business through a JV company known as Presto Power Sdn Bhd, which will undertake the launching of AnkerBox power bank units and related services in Malaysia.
PUC said the JV would enable it to expand the service offerings in Presto to its users by venturing into the portable battery rental service in Malaysia.
"The JV will also increase the market footprint of Presto App, thus improving the attractiveness and increasing the stickiness of Presto App, in line with PUC’s aim to become the country’s leading digital services provider."
Under the JV, PUSB, Instpower and Cheng Lin will hold 40%, 30% and 30% stakes respectively in Presto Power.
"The initial funding for the project and business will be sourced from third party investor(s), which has yet to be identified," said PUC.
"The board believes that the future prospect of PUC Group will remain positive and the JV would enhance the growth potential of the group," it added.
PUC shares closed up one sen or 4% at 26 sen today, bringing a market capitalisation of RM160.46 million. A total of 19.6 million shares were traded.