KUCHING: Asteel Resources Sdn Bhd and Top-Mech Provincial Sdn Bhd have set up a joint venture company for the sales of cranes and machinery manufactured by Top-Mech.
Asteel Resources is a 80.36 per cent-owned subsidiary of Asteel Group Bhd (formerly known as YKGI Holdings Bhd).
The parties entered into a shareholders’ agreement for the joint venture company — Asteel Top-Mech Sdn Bhd (ASTM) — with Asteel Resources and Top-Mech each holding a 50 per cent equity interest.
Asteel Resources is principally engaged in investment holding whilst its subsidiary companies are involved on the manufacturing and selling of roll-formed products and trading in hardware and building materials in Sarawak and Sabah.
Top-Mech is principally involved in manufacturing of lifting and handling equipment and renting of construction machinery and equipment. Top-Mech is one of the leading crane manufacturers in Malaysia.
ASTM will be involved in the selling and distribution as well as leasing of cranes, equipment and machinery as well as providing after-sale service and maintenance of cranes, machinery and equipment.
“The working capital and financial requirement of ASTM shall be funded by issued and paid-up capital, shareholders’ advances and borrowings from banks and financial institutions,” Asteel said in a filing with Bursa Malaysia.
On the rationale for the joint venture, Asteel said it would enable Asteel Resources to expand its product range in East Malaysia, and Top-Mech to extend its market reach by leveraging on Asteel Resources’s extensive business network in Sarawak and Sabah.
Such business, added Asteel, augurs well with Asteel Resources’s aspiration to be the leading building materials solution provider on Borneo island and Top-Mech’s vision to be a globally recognised brand in the material building industry.
“Further, the proposed JV will provide a platform for both companies to collaborate further in future endeavours,” it added.
Asteel expects the joint venture business to contribute positively to the group’s future earnings and earnings per share.
Meanwhile, Asteel has recorded revaluation surplus of about RM6.27 million following a revaluation exercise conducted on its landed properties in Sarawak, Sabah and Johore recently.
The revaluation of two properties at Demak Laut Industrial Park, Kuching yields revaluation surplus of about RM2.83 million while that of a property in general industrial zone of Kota Kinabalu Industrial Park and in Senai, Johore yield surpluses of RM2.78 million and RM661,750 respectively.
The revaluation surplus will increase the net assets per share of Asteel group by RM0.013 at December 31, 2023, said the company.
The revaluation exercise was carried out by Henry Butcher Malaysia (Sabah) Sdn Bhd and PA International Property Consultants Sdn Bhd.
