Thursday 28 Mar 2024
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KUALA LUMPUR (March 20): Tex Cycle Technology (M) Bhd, which specialises in the recycling and recovery of scheduled waste, is forming a joint venture company (JVco) with a local company to expand its renewable power generation business.

The local company is EFS Revision Energy Sdn Bhd, whose principal activity is the provision of engineering, procuring, construction, commissioning and consultancy services related to renewable energy and energy efficiency.

In a stock exchange filing, Tex Cycle said its wholly-owned Tex Cycle Sdn Bhd (TCSB) has inked a shareholders' agreement with EFS today to establish the JVco, EFS MySolar Sdn Bhd, which will identify, evaluate and execute strategic business opportunities in the solar energy sector.

The JVCo, which will have a share capital of 1 million shares of RM1 each, will be 70% owned by Tex Cycle and 30% held by EFS. This means Tex Cycle will take up the stake for RM700,000.

“The board of the JVCo shall comprise three directors. As such, Tex Cycle shall be entitled to appoint two directors and EFS shall be entitled to appoint one director,” the company said.

Tex Cycle shares closed up 4.5 sen or 30% at 19.5 sen today, which gives it a market capitalisation of RM49.5 million. In the past 12 months, the stock price has fallen by about 63%.

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