KUALA LUMPUR (Feb 7): Bintai Kinden Corp Bhd and Sarawak Consolidated Industries Bhd (SCIB) have entered into a memorandum of understanding (MOU) to establish a joint venture (JV)  for exploring business opportunities, securing new projects and sharing profits.

They said the MOU is a preliminary step they are taking as they explore a working relationship and cooperation to combine skills, expertise, capabilities, experience and collectively bid for projects in Malaysia, as well as to set out the principal terms of the arrangement between the parties.

The JV vehicle to be used is SCIB’s wholly owned subsidiary SCIB Infraworks Sdn Bhd, in which SCIB will retain a 51% stake, while Bintai Kinden will subscribe to the remaining 49%.

In its bourse filing, SCIB said the MOU will not have any effect on its issued share capital, and is not expected to have any material effect on its earnings, net assets and gearing for the financial year ending June 30, 2023.

Similarly, Bintai Kinden said the MOU will not have any effect on its issued share capital but is expected to contribute positively towards Bintai Kinden’s future earnings.

“We welcome this strategic alliance with Bintai Kinden, as both parties can leverage each other’s strengths and expertise that add value to any projects we are involved in together,” said SCIB managing director Rosland Othman in a statement.

“SCIB’s manufacturing arm, the leading precast concrete and industrialised building system products manufacturer in East Malaysia, is already supporting our construction arm in projects throughout the country.

“Our focus on small- to mid-sized construction healthcare, educational and utility facilities, as well as rural infrastructure projects, together with investment in technology such as 3D printing and automation are also strengths that we can leverage on for future JV projects,” he said.

SCIB executive director Ku Chong Hong noted that the JV brings together two teams with core expertise and knowledge in construction and engineering that will give an edge to projects undertaken together.  

Meanwhile, Bintai Kinden executive director Azri Azerai said that the group looks forward to the partnership and believes that its services could complement the JV.

”Bintai Kinden’s core expertise is (in) mechanical and electrical engineering services, and as multi-disciplined building and industrial service engineers and specialists, we work in all the major market sectors, from commercial buildings to industrial complexes. We design, install and commission systems that include the full range of engineering services which we believe can complement the JV,” said Azri.

Bintai Kinden’s share price was unchanged at nine sen in afternoon trading on Tuesday (Feb 7), giving the group a market capitalisation of RM73.55 million. SCIB was also unchanged at 15 sen, valuing the group at RM87.31 million.