Thursday 22 Feb 2024
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KUALA LUMPUR (Oct 21): Kejuruteraan Asastera Bhd (KAB) is partnering Resource Data Management Asia Sdn Bhd (RDMA) in identifying opportunities in the provision of end-to-end solutions related to energy efficiency, automation engineering as well as Internet of Things (IoT) integration.

In a filing today, KAB said its wholly-owned subsidiary KAB Technologies Sdn Bhd (KABT) has inked a joint venture (JV) and shareholders' agreement with RDMA, following the memorandum of understanding (MoU) entered into by the parties on Sept 3.

Under the agreement, KABT will be holding 80% of the shares in the JV company, while RDMA, which is involved in the distribution of electronic control systems related to temperature and energy, will hold the balance 20% stake.

Besides technological solutions, the JV company will also be providing soft services including auditing, analytics and remote management services.

"The operation of the business may be based on methods or structures such as sale, energy performing contracts, service model, build operate transfer model and such other methods or structures based on the requirements of the potential clients of the JV company," said KAB.

The financing of the JV company will be done via the issuance of redeemable convertible preference shares by KABT.

"The proposed JV is to expand the scope of work within the mechanical and electrical solutions for KAB group. This will allow KABT to explore further into the technological field and provide its clients a more comprehensive solution," it said.

The group said the JV will also enable the company to penetrate new markets including commercial buildings, healthcare, retail malls, industrial areas and universities.

At 2.36pm, KAB rose 8 sen or 14.41% to 63.5 sen, giving a market capitalisation of RM224.79 million.

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