Caely to form 60:40 JV company in Indonesia
21 Nov 2022
Caely Holdings Bhd is going to form a joint venture (JV) company to carry the business of apparel manufacturing, undergarments and lingerie in Jakarta, Indonesia.
In its filing with Bursa Malaysia, it said wholly-owned unit Classita (M) Sdn Bhd entered into a shareholders’ agreement with Jakarta-based PT Bintang Mas Jogja (BMJ) to set up a company (newco) on Nov 18.
This would provide the troubled lingerie maker with an opportunity for growth expansion, as well as to access new markets and distribution networks, it added.
Classita and BMJ will hold 60% and 40% stake respectively in the company, which will have an initial issued and paid-up capital of RM1.74 million (IDR6 bil).
The directors of Classita are Ng Keok Chai, Leong Seng Wui, Hor Weng Kuan and Kenny Khow Chuan Wah. BMK’s directors are Andrew Teguh and Robert Teguh.
Caely added that the execution of the shareholders’ agreement is expected to contribute positively to the group’s earnings in future.
The Edge reported last month that the expansion into Indonesia will help reduce the group’s operating costs due to lower wages and abundant skilled worker supply there, as well as help Caely grow its customer base.
Caely, which is embroiled in allegations of corruption and misuse of funds, reported a net loss of RM352,000 for the three-month period from April 1 to June 30, on a revenue of RM15.75 million.
Caely shares were last traded at 28 sen, for a market capitalisation of RM96.62 million.
Source: The Edge Markets
