KUALA LUMPUR (Sept 10): Seremban Engineering Bhd's (SEB) associated company, Selekta Spektra Sdn Bhd (Selektra Spektra), has formed a joint venture with another party, where Selektra Spektra shall provide 200 acres land in Kinta, Perak, for the purpose of plantation development or other activities.

In a filing to Bursa Malaysia, SEB said the counter party to the JV is one Minda Pilihan Sdn Bhd (MPSB), which is involved in planting, cultivating, milling and dealing in agriculture and forest product, particularly from rubber trees and oil palm trees.

Selektra Spektra, by virtue of an agreement dated March 06, 2013, has entered into a concession agreement with Majlis Bandaraya Ipoh to design, build, operate and transfer a solid waste disposal plant on part of the land measuring in area approximately 207.3 acres, and to carry out any incidental project on the remainder portion of the land, measuring in area approximately 360 acres. Subsequently, the firm has entered into the JV with MPSB.

Under the JV agreement, MPSB will carry out plantation or other activites on the said land, at its own cost and expense. The firm shall also be responsible for raising any finance to undertake the development on the land, without the security of the JV land as collateral.

"The Proposed JV is expected to maximize the return on the investment of the company, and usage of the JV Land, and be part of the SEB Group’s effort on green initiative for Corporate Social Responsibility," said SEB in the filing.

SEB did not disclose the percentage of its shareholdings in Selekta Spektra, and the form of return which the latter may expect from the JV.