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Sarawak Cable teams up with local firm to revitalise steel fabricating arm

Sarawak Cable teams up with local firm to revitalise steel fabricating arm

18 Apr 2022

Sarawak Cable Bhd (SCable) has teamed up with privately-held Hercules Engineering (Sea) Sdn Bhd to jointly revitalise the business of SCable’s wholly-owned steel fabricating subsidiary Sarwaja Timur Sdn Bhd and to develop synergies between SCable and and Hercules in order to bring Sarwaja Timur to the next level of success for the mutual benefit of both groups.

The principal activities of Sarwaja Timur are manufacturing, fabrication, galvanising and sale of steel structures.

“Sarwaja Timur is in need of funding and management and technical expertise to revitalise its business and Hercules agrees to use its best endeavours to provide the management and technical expertise to Sarwaja Timur and to assist it in procuring vendor financing for its business in Malaysia and overseas,” said SCable in a bourse filing on Monday (April 18).

SCable has on Monday entered into a memorandum of agreement (MoA) with Hercules for the purpose.

Founded in 1972, Hercules specialises in manufacturing steel and rubber engineering devices, construction equipment, construction cementitious grout, bitumen & waterproofing.

SCable said the group and Hercules are desirous of cooperating with each other to revitalise Sarwaja Timur’s business.

“The MoA will not have any effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholdings’ structure of the company for the financial period ending May 31, 2022. However, it is expected to contribute positively to the future earnings of SCable Group,” it added.

SCable shares closed down 0.5 sen or 2.86% at 17 sen on Monday, bringing a market capitalisation of RM65.94 million.

Source: The Edge Markets