According to its Bursa announcement, the group will have a 60%-equity stake, while Tech Idea will take up the remaining 40% stake in the JV company.
Furthermore, the board of TSI shall comprise of three members with two of which shall be nominated by Luster and the remaining shall be nominated by Tech Idea.
“This agreement shall continue until such time when the parties shall mutually agree to terminate their relationship,” it said.
Luster elaborated that the joint venture is in line with its overall corporate strategy of pursuing new business opportunities to enhance returns on investments.
With the JV, Tech Idea will transfer its manufacturing and engineering technology as well as research & development capabilities to TSI Zone via its parent company Tai Sing Industrial Co Ltd, which will benefit the group’s manufacturing division.
The group also stated that this is in line with its strategy to enhance its manufacturing and engineering capabilities as well as its research and development abilities.
Source: The Sun Daily