OTHERS Minetech Resources Berhad ("Minetech" or the "Company") - Original Equipment Manufacturing Agreement between Minetech Asphalt Man International Sdn Bhd, a 85%-owned subsidiary of Minetech and Cretpaver Asia Sdn Bhd.

MINETECH RESOURCES BERHAD

Type Announcement
Subject OTHERS
Description
Minetech Resources Berhad ("Minetech" or the "Company") - Original Equipment Manufacturing Agreement between Minetech Asphalt Man International Sdn Bhd, a 85%-owned subsidiary of Minetech and Cretpaver Asia Sdn Bhd.

Introduction

The Board of Directors of Minetech (“Board”) wishes to announce that Minetech Asphalt Man International Sdn Bhd [Registration No. 200601028242 (747998-P)] ("MAMI"), a 85%-owned subsidiary of Minetech has on 15 November 2022 entered into an Original Equipment Manufacturing Agreement (“Agreement”) with Cretpaver Asia Sdn Bhd [Registration No. 201701007836 (1222001-M)] (“CASB”) for a collaboration wherein MAMI will be responsible for manufacturing of Emulsion Bitumen (which shall include but not limited to K140, RS1k, RS2k, SS1k etc.) (“Bituminous Products”), and CASB will be the exclusive distributor to entail the promotion and sale of the Bituminous Products to the public in Malaysia. The estimated total contract value is approximately RM10.0 million per annum.

INFORMATION ON THE AGREEMENT

The Agreement shall have an initial term of one (1) year and it shall be automatically extended for another one (1) year upon the expiry of the term unless earlier terminated in accordance with the Agreement.

During the term of the Agreement, MAMI will be responsible for the manufacturing of the Bituminous Products and the manufacturing plant shall be located at MAMI’s premises. CASB will be responsible for exclusively distributing the Bituminous Products and shall utilise their expertise to promote and sell the manufactured Bituminous Products to the public in Malaysia.

INFORMATION ON MAMI

MAMI is a private company limited by shares incorporated in Malaysia with its domicile at D-G-5, Block D, Parklane Commercial Hub, No. 21, Jalan SS7/26, Kelana Jaya, 47301 Petaling Jaya, Selangor Darul Ehsan. MAMI is principally engaged in the manufacturing and trading of bituminous products. The Directors of MAMI are Mr Chin Leong Choy, Mr Lee Inn Chean, Encik Azlan Shah Bin Zainal Arif and Encik Awgku Mohd Reza Farzak Bin Awg Daud.

INFORMATION ON CASB

CASB is a private company limited by shares incorporated in Malaysia with its domicile at No. 21, Jalan Meru Indah 19, Taman Perindustrian Meru Indah Kapar, 42200 Klang, Selangor Darul Ehsan. CASB is principally engaged in supplying materials for road construction, roadline marking and road safety furniture. The Directors of CASB are Mr Lim Bok Kian, Mr Tan Seow Leng and Dato’ Chia Kee Mong. 

RATIONALE/ PURPOSE OF THE AGREEMENT

The Agreement provides opportunity for the Company and its subsidiaries (“Minetech Group”) to expand its revenue sources. The Agreement is expected to contribute positively to the future financial position of the Minetech Group.

FINANCIAL EFFECTS OF THE AGREEMENT

  

1. Share Capital and Substantial Shareholders’ shareholdings

The Agreement will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of Minetech Group as it does not involve any issuance of new shares by Minetech Group. 

2. Earnings Per Share

The Agreement is not expected to have any material effect on the earnings per share of Minetech Group for the financial year ending 31 March 2023.

3. Net Assets Per Share and Gearing

The Agreement will not have any material effect on the net assets per share and gearing of the Minetech Group.

APPROVALS REQUIRED

  

The Agreement is not subject to the approval of the Company’s shareholders and any other regulatory authorities.

RISK FACTORS

The Company does not expect any material risk arising from the Agreement other than the normal operational risk associated with the Agreement, which the Company would take appropriate measures to minimise it.

DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/ or Major Shareholders of Minetech and/or persons connected to them have any interest, direct or indirect, in the Agreement.

DIRECTORS’ STATEMENT 

The Board of Directors of Minetech, after having considered the terms and conditions of the Agreement and all the relevant aspects including the rationale, prospects and financial effects of the Agreement, is of the opinion that the Agreement is in the best interest of the Minetech Group.

This announcement is dated 15 November 2022.






Announcement Info

Company Name MINETECH RESOURCES BERHAD
Stock Name MINETEC
Date Announced 15 Nov 2022
Category General Announcement for PLC
Reference Number GA1-14112022-00058