KUALA LUMPUR: Ageson Bhd’s share price rose over 8% in early trade this morning after it entered into a joint venture (JV) agreement to undertake a RM330mil sand supply project.
Formerly known as Prinsiptek Corp Bhd, the counter rose 8.7%, or one sen to 12.5 sen with 16.2 million shares traded. Ageson-PA jumped 33.33%, or 0.5 sen to two sen with 8.4 million shares exchanged hands.
Ageson’s wholly-owned subsidiary Esa Pile Sdn Bhd entered into a term sheet to set up a JV company with Navis Marinus Pte Ltd to undertake a S$107.64mil (RM330.2mil) sand supply contract for JTC Corp in Singapore.
The contract entails the supply and delivery of sand from the Philippines to Singapore for a period of three years via the JV company.
Under the term sheet, Esa Pile will receive a 51% equity stake in the JV company with Navis holding the remaining 49% equity interest.
Esa Pile will be providing project management services as well as any required assistant and relevant expertise to Navis to ensure smooth implementation of the project.
Navis is required to obtain the requisite approvals from relevant authorities for the project, ensure a good standard of sand quality and the provision of transportation services for the supply and delivery of the sand to Singapore.
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