KUALA LUMPUR: Kejuruteraan Asastera Bhd’s (KAB) subsidiary KAB Technologies Sdn Bhd (KABT) has entered into a binding term sheet with Vodex Technical Services Sdn Bhd to expand its mechanical work division.
The group said in a statement that the two parties formed a special purpose vehicle or SPV named TVT Link Tech Solutions Sdn Bhd with KABT owning a 60% stake and the remainder going to Vodex.
Subsequently, the employees and all existing operations and maintenance (O&M) contracts will be novated to TVT Link.
According to KAB, Vodex is an outsourced-focus technical management and engineering company, providing mechanical and electrical O&M solutions that complement the core business of its customers to optimise operational efficiencies.
The O&M contracts are expected to provide an estimated 10% additional contribution to the group’s bottom line going forward, said KAB.
“KAB has been actively involved mainly in the electrical scope of work and today, I am very excited with the opportunity to partner Vodex as it will further enhance our mechanical engineering and operations and maintenance services segments.
“When we made our debut on the ACE Market in 2017, part of KAB’s strategies was to expand into these business segments.
“Therefore, through this partnership we are confident that we will be able to expedite our growth plans and at the same time, complement our expansion in the operations and maintenance services,” said KAB managing director Datuk Lai Keng Onn.
Meanwhile, KAB has been included as a constituent of the FTSE Bursa Malaysia EMAS Index, whereby it will be provided with an environmental, social and governance rating in accordance with the globally accepted FTSE4Good methodology and rating model.
“This listing further drives our responsibility and commitment towards our stakeholders, the environment and society, focusing on sustainable growth as we strive to meet the highest standards of good ESG practices,” said Lai.