SCOMI-RC ASIA JOINT VENTURE TO COLLECTIVELY BID FOR TENDERS IN RAIL INDUSTRY
KUALA LUMPUR, July 15 -- Scomi Group Bhd has entered into a joint venture (JV) agreement with RC Asia Engineering Sdn Bhd to collectively bid for tenders for construction of railway stations, tracks or other related railway infrastructures in the rail industry.
In a filing with Bursa Malaysia, the group said both parties had signed a JV agreement today for the purpose of regulating the conditions for and of a joint venture company to be incorporated later (JV Co).
Scomi would own 51 per cent equity interest in JV Co while RC Asia Engineering would hold the remaining 49 per cent.
The JV is also to draw upon the skills, expertise, experience and capabilities of each other for the benefit of the JV Co.
“The company does not foresee any exceptional risk other than operational risks associated with the proposed JV which are similar to the operational risks that Scomi Group Bhd is already accustomed to.
“Hence, the board believes that the experience and expertise of its management team will enable the company to mitigate these risks effectively,” it said.
RC Asia Engineering is a railway track specialist and is primarily involved in new construction, upgrading and rehabilitation of railway tracks as well as infrastructure works related to railway.
-- BERNAMA
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