KUALA LUMPUR (Aug 14): Vertice Bhd is teaming up with Vizione Holdings Bhd to establish a 50:50 joint venture (JV), which will strengthen its core competencies in the construction industry.

Vertice said the partnership was formalised after its wholly-owned Vertice Construction Sdn Bhd (VCSB) inked a JV-cum-shareholders agreement with Vizione Construction Sdn Bhd (VZSB), which will lay down the relevant terms and conditions, as well as regulate their affairs related to certain aspects of future business dealings.

The JV is expected to diversify Vertice's business portfolio and income stream in the long run, it said in a filing with Bursa Malaysia today.

As for the structure of the partnership, Vertice said each party will subscribe for 500,000 shares, or a combined one million shares in total.

To fund the incorporation of the JV company, Vertice said it will be funded by bank borrowings or advances from the shareholders.

"VCSB and VZSB will be jointly liable for their respective shares of the funding for the JV company," it added.

Vertice said each party will nominate two individuals to form a technical committee, which will comprise a minimum of two members, to advise the board of directors on matters related to the JV company's projects.

"The board of directors of the company is of the opinion that the JV is in the best interest of the group," it added.

Vertice, formerly known as Voir Holdings Bhd, is a construction firm with diverse interest in property development, property investment, building materials and also retail fashion.

As for Vizione, it also has similar interest with Vertice, particularly in the area of property development, construction and property investment.

At 5pm, Vertice shares gained 1.5 sen or 1.55% to close at 98 sen today, valuing it at RM170.68 million, while Vizione ended its trade unchanged at 13.5 sen, for a market capitalisation of RM498.91 million.