Kim Heng’s 5G2 wholly-owned subsidiary Kim Heng 5G2 Agency has entered into a joint venture (JV) agreement on Jan 17 with RUHM Holdings and Wardatul Wahdah Binti Ahmad Nokman to subscribe for shares in a JV company.
Kim Heng Agency has subscribed to 49% of the RM100,000 ($28,378) issued and paid-up capital of the Malaysia-incorporated JV company, Mazu Offshore, with RUHM and Wahdah subscribing to 31% and 20%, respectively.
The investment in the JV company is expected to enhance Kim Heng’s business potential in Malaysia and represents a further expansion by the group of its offshore marine business in the country.
In addition, Kim Heng says the JV positions it well for the expected upturn of the oil and gas industry.
The RM49,000 subscription will be funded through the company’s internal resources and is presently not expected to have any material impact on its earnings per share or net tangible assets per share for the FY2024 ending Dec 31.
Shares in Kim Heng closed 0.1 cents higher or 1.32% up at 7.7 cents on Jan 17.
