KUALA LUMPUR (Nov 12): Sapura Industrial Bhd (KL:SAPIND) is acquiring the business of Mili Tech Sdn Bhd (MTSB) for RM372,136, as part of a joint venture (JV) to undertake refurbishing and recycling of batteries in electric vehicles (EVs) and/or hybrid cars as well as servicing, repair and maintenance of EVs and/or hybrid cars.

The purchase consideration will be satisfied by Sapura Industrial partly via the issuance of 225,000 shares equivalent to 45% of the entire share capital in its wholly owned subsidiary SIB Mili Sdn Bhd (SIBM), amounting to RM225,000, and the remaining RM147,136 in cash.

In a filing with Bursa Malaysia on Tuesday, Sapura Industrial said upon completion of the acquisition of MTSB's assets and business, both Sapura Industrial — via its wholly owned subsidiary SIB Ventures Sdn Bhd (SIBV) — and MTSB will be shareholders of SIBM. SIBV and SIBM had on Nov 11 signed a shareholders agreement with MTSB for the purpose of the JV.

Sapura Industrial said the JV aligns with its strategic goals of growth and diversification, as well as Malaysia’s broader national vision for increased EV adoption.

"Through this partnership, we aim to advance the development of EV services and solutions, expand our service capabilities, and deepen our expertise. Additionally, this JV allows us to support a circular economy that leverages a core business model focused on resource efficiency and sustainability," it added.

Sapura Industrial believes that the JV will contribute towards the growth potential and business of the group.

MTSB is mainly involved in the business of servicing, maintenance and repair of EVs and hybrid motor vehicles and sale of parts, components, tools, supplies and accessories relating thereto, as well as specialising in advanced solutions and related training for EVs and hybrid motor vehicles.

The paid-up capital of MTSB is RM50,000 represented by 50,000 shares. The current shareholders of MTSB are its director Mohd Farid Abdul Manaf and Nurshalliza Hajis, who hold 70% and 30% of MTSB shares respectively.

Sapura Industrial shares closed down two sen or 2.44% at 80 sen on Tuesday, giving it a market capitalisation of RM58.2 million. The stock has fallen 8.05% so far this year.