The group's wholly-owned unit Serba Dinamik International Ltd (SDIL) had entered into the agreement to form a strategic collaboration and to govern the material aspects of the proposed JV, the conduct of the business and the management of the JV company Sufini Holding Ltd.
The JV company, which had been incorporated on Feb 20, 2018 in the Abu Dhabi Global Market, is a special purpose vehicle that will hold a 100% stake in Msufini (T) Ltd, the direct owner of the plant, Serba Dinamik added in a filing with Bursa Malaysia today.
SDIL will hold a 25% stake in Sufini, it said, while Junaco will own the remainder.
Last October, Serba Dinamik had via SDIL inked a JV agreement with Tanzanian water-related solution supplier Junaco to develop the chlorine skid mounted chlor-alkali plant, which has a capacity of 45 tonnes per day.
The JV will see SDIL being involved in the engineering, procurement, construction and commissioning works which are valued at approximately RM295.26 million and marks the group's entry into the African continent.
Shares in Serba Dinamik traded down 3 sen or 0.9% at RM3.32 this afternoon, giving the group a market capitalisation of RM4.88 billion.
Source: The Edge Markets