Friday 29 Mar 2024
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KUALA LUMPUR (Aug 23): Watta Holding Bhd has secured the distributorship rights to sell LG Electronics’ feature and smart mobile phones for a one-year period.

Its subsidiary, Watta Energy (M) Sdn Bhd (WESB), inked a distributorship agreement with LG Electronics Singapore Pte Ltd (LGE) for the appointment of WESB as LGE’s Malaysian distributor for the sale of the said phones.

In a bourse filing today, Watta said WESB may resell the products to sub-distributors, resellers and/or end users, directly.

The agreement shall commence on July 1, 2016, irrespective of the date of signing the agreement.

LGE is a wholly-owned subsidiary of LG Electronics Inc — a global leader and technology innovator in consumer electronics, mobile communications and home appliances.

Watta said the agreement will not have any material effect on the group’s earnings and net assets for financial year ending Sept 30, 2016 (FY16). It is only expected to contribute positively to the Watta Group in FY17, during the duration of the agreement.

Watta, which is involved in the distribution of automotive batteries and telecommunication equipment, saw its shares closed unchanged at 36.5 sen today, for a market capitalisation of RM30.83 million.

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