KUALA LUMPUR: BWYS Group Bhd’s indirect wholly-owned subsidiary, YS Global Industries Sdn Bhd (YSGI) has entered into cooperation agreements with Runwin International (HK) Holding Group Co Ltd to set up a production line worth 19.38 million yuan (RM11.45 million).
In a filing with Bursa Malaysia today, it said the purpose of the agreement is to set up a colour coating production line for the commercial production of colour-coated steel coils.
In conjunction with the cooperation agreements, YSGI, together with YS Success Industries Sdn Bhd (YSSI), had entered into a shareholders’ agreement (SHA) with Lionwise Holding Group Pte Ltd (LHG) to form a joint venture (JV) to regulate their relationship inter se as shareholders of YSGI and the conduct the business and affairs of YSGI.
LHG is an 81.48 per cent-owned subsidiary of Runwin and FXD Group Sdn Bhd (FXD).
"The proposed JV will be undertaken via capital increase and share expansion in YSGI by YSSI, LHG and FXD. As at Sept 9, 2025, the existing issued and paid-up capital of YSGI is RM2 million, comprising two million ordinary shares.
"Subsequent to the SHAs, the issued and paid-up capital of YSGI shall be increased to RM15.04 million, comprising 15.04 million shares, to be held by or to be allotted to the shareholders at an issue price of RM1.00 per share,” it said.
It said pursuant to the SHAs, YSSI shall subscribe for an additional 5.6 million shares in YSGI for RM5.6 million, while LHG shall subscribe for 6.59 million YSGI shares for RM6.59 million and FXD shall subscribe for 854,000 shares for RM854,000.
"Following the allotment of new shares, YSGI shall cease to be a wholly-owned subsidiary of the BWYS as the equity interest of the company in YSGI through YSSI will be reduced from 100 per cent to 50.52 per cent,” it noted.
BWYS said the proposed JV will not have an effect on the issued share capital and the shareholdings of the substantial shareholders of the company, as it does not involve any issuance of new ordinary shares of BWYS.
"The proposed JV is not expected to have any immediate material impact on the earnings or earnings per share (EPS) of the group for the financial year ending Dec 31, 2025.
"However, it is expected to contribute positively to BWYS’ earnings in the medium to long-term upon the successful implementation and commencement of operations,” it added. - Bernama
