PETALING JAYA: BMS Holdings Bhd
has entered into a letter of intent (LOI) with Wee Tatt Traders Sdn Bhd’s shareholders to establish a joint venture (JV) company to undertake the distribution and supply of tiles, building materials and related products.
In a filing with Bursa Malaysia, BMS said it had entered into the LOI with Tan Kar Seng, Tan Hooi Ling and Chiew Bee Hong.
“The JV company will principally undertake the trading, distribution, marketing, supply and sale of tiles, ceramic and porcelain products, sanitary ware, building materials and related products, as well as such other related businesses as may be mutually agreed by the parties.
“Upon the incorporation of the JV Company, BMS shall contribute RM3mil in cash as its initial capital contribution, whilst the Wee Tatt shareholders shall contribute inventory/stock-in-trade valued at RM2mil as their initial capital contribution, in consideration of their respective equity interests in the JV company.” BMS said the proposed JV is intended to facilitate the expansion of the group's business and distribution network in the northern region of Peninsular Malaysia through collaboration with Wee Tatt, which is principally involved in the trading of ceramics and related products.
“The proposed JV is also expected to enable the group to leverage on the existing business operations, market presence and resources of Wee Tatt and to enhance the group's market reach, particularly in the northern region of Peninsular Malaysia.”
