PETALING JAYA: Chinese battery maker Jujiang Power Technology Co Ltd is proposing to subscribe to a 40% stake worth RM48mil in ABM Fujiya Bhd
’s (Afujiya) unit, Fuya Energy Sdn Bhd (FESB).
In a filing with Bursa Malaysia, Afujiya said the proposed subscription will serve as an avenue for FESB to settle the majority of the debt owing to Jujiang in an expeditious manner.
In addition, Afujiya said the proposed subscription will allow Jujiang to contribute significantly in the future prospects of Afujiya Group via the holding of a substantial shareholding in FESB.
“In line with the Sarawak State Government’s commitment to reduce carbon admission, FESB has collaborated with i-Cats University, a premier academic institution in Sarawak, to explore the substitutes of lithium in order to ensure the batteries to be manufactured are eco-friendly.
“With the equity participation of Jujiang in FESB pursuant to the proposed subscription, Jujiang can share its knowledge and experience relating to lithium battery production technology with i-Cats University.”
Upon completion of the proposed subscription, Afujiya said the revenue of the group is expected to be increased, which will translate into the improvement of its profits.
“Ultimately, the proposed subscription will create value to the shareholders of Afujiya in future.”
