KUALA LUMPUR (Sept 15): UUE Holdings Bhd (KL:UUE) is forming a joint venture with a unit of Singapore-listed EGP Energy Corporation Ltd to build, develop and deliver power-grid infrastructure, including extra-high-voltage (EHV) electrical systems. 

In a bourse filing on Tuesday (Sept 15), UUE said the partnership marks a strategic expansion of its underground utilities engineering business into EHV substation engineering.

The venture is expected to open opportunities in large-scale grid projects, create a new earnings stream, and bolster the group's long-term growth prospects.

Under the agreement, UUE's wholly-owned subsidiary Kum Fatt Engineering Sdn Bhd (KFE) will partner EGP Infrastructure Investments Pte Ltd (EGPII) to establish a Malaysian JV company — EGP-UUE Power System Engineering Sdn Bhd.

EGPII will hold a 60% stake in the JV, while KFE will own the remaining 40%. The JV will have an initial paid-up capital of RM1 million, with KFE funding its RM400,000 portion through internal funds.

The JV will focus on power-grid infrastructure, including the supply, installation and commission of transmission and distribution systems covering voltage levels between 132 kilovolts (kV) and 500kV.

KFE is responsible for project development support, liaison with regulatory authorities, grid operators and customers, operations and maintenance planning. It will also be responsible for project monitoring, preparation and submission of tenders and proposals, besides general administrative support.

EGPII, meanwhile, will mainly handle engineering design, procurement, supply, installation, testing and commissioning of EHV equipment.

UUE’s share price has rebounded over 75% from its recent low of 34.5 sen in early April, closing at 60.5 sen on Tuesday.

That last traded price gives the company a market capitalisation of RM552 million. Year to date, the stock has gained 14.2% from 53 sen.