PETALING JAYA: Jati Tinggi Group Bhd
(JTGB) is proposing to subscribe to 520,408 new ordinary shares in Roflex Pipe Sdn Bhd (representing a 51% interest) of the latter’s enlarged number of issued ordinary shares, for RM6.12mil.
In a filing with Bursa Malaysia, the infrastructure utilities engineering solutions provider said Roflex is principally involved in the manufacturing of polyethylene pipe and other related products and materials.
“Roflex is one of the suppliers of polyethylene pipes to JTGB, which are utilised in the group’s projects.
“The proposed subscription will enable JTGB to participate in the future business operations and share in the profitability of Roflex, and have direct access to polyethylene pipes which are essential for the group’s projects.”
JTGB added that the proposed subscription is expected to create synergistic benefits which include economies of scale and cross marketing of products / services offering to the enlarged group’s customers.
“Thus, the board believes that the proposed subscription will contribute positively to the group's future earnings potential,” it said.
