Intraco said has entered into a non-binding heads of agreement with Tat Hong Holdings and prominent Myanmar businessman Aung Moe Kyaw to establish a joint venture company in Singapore to carry out the business of rental of cranes and distribution of cranes and excavators in Myanmar.

The JV will have an initial paid-up capital of US$3 million ($3.7 million) with both Intraco and Tat Hong holding a 40% stake each, with the remaining 20% to be held by Aung Moe Kyaw.

Intraco’s share of capital will be sourced from internally generated funds. Intraco is 29.9% owned by TH Investments, the private investment holding company of Roland Ng, who is the managing director of Tat Hong. As such, under SGX listing rules, the deal is considered an interested person transaction.

Intraco says the JV will hold the licence with various principals and carry out the distribution of cranes and excavators in Myanmar. It will also incorporate a wholly-owned subsidiary in Myanmar to provide the rental of crane services in the market.

Each of the three parties will contribute their respective areas of expertise to the JV. Intraco will incubate and operate the JV. SGX-listed Tat Hong will provide its know-how in relation to the JV’s business and operations, while Aung will contribute his knowledge of Myanmar regulations and market practices.

{jcomments on}