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Scomi inks JV agreement to explore opportunities in rail industry

Scomi inks JV agreement to explore opportunities in rail industry

19 May 2021

Loss-making Scomi Group Bhd has inked a joint venture (JV) agreement with Zuha Systems Sdn Bhd to jointly explore opportunities in the rail industry.

“Zuha is primarily involved in the public transportation and energy sectors. Its business focus areas include urban transport, rail, oil and gas and renewable energy amongst others,” Scomi said in a stock exchange filing.

“Scomi believes that this JV with Zuha offers vast potential for the company as both organisations bring complementary experience and expertise to the JV. The JV will target opportunities in new conventional rail and urban rail projects which are anticipated in the country,” it added.

Scomi said the JV is also part of the group’s effort towards restructuring and rebuilding the ailing group.

It added that by utilising the maintenance expertise within the group, the JV will potentially secure projects in maintenance, repair and overhaul for the rail industry.

“The board of directors of Scomi Group continue to be focused on setting the base for the rehabilitation of the company and is actively rebuilding its businesses and identifying opportunities in the market.

“The proposed JV is not expected to have a material effect on the earnings per share, net assets per share and gearing of Scomi for the financial year ending June 30, 2021,” Scomi said.

Shares of Scomi ended unchanged at five sen today, valuing the group at RM49.23 million.

Source: The Edge Markets

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