IEV Holdings Limited announced that pursuant to the completion of the feasibility study on LNG distribution in Malaysia, both IEV and Gas Malaysia have decided to pursue further business cooperation initiatives for the distribution of CNG instead.
IEVand Gas Malaysia have entered into a joint venture agreement to incorporate a joint venture company, to pursue and engage in the following businesses:
The JVC is expected to have an initial authorised share capital of RM 6,000,000, comprising 6,000,000 ordinary shares of RM1.00 each. IEV Energy’s share of the capital contribution is expected to be funded by internal resources. Pursuant to the JVA, the paid-up capital of the JVC may be increased from time to time, subject to the approval of both IEV Energy and Gas Malaysia. The JVC will be 25% and 75% held by IEV Energy and Gas Malaysia, and is expected to be incorporated as soon as the condition precedents are fulfilled. One of the CPs requires that the JVC obtain the necessary approvals from the relevant regulatory authorities in Malaysia.
As the construction of the necessary infrastructure for the CNG distribution system will likely take place in 2014 after the necessary approvals from the relevant regulatory authorities in Malaysia have been obtained. The JVA is not expected to have any material impact on the consolidated earnings per share and/or net tangible assets per share of the Group for the financial year ending 31 December 2014.
President and CEO of the group, Christopher Do commented, “The formation of this joint venture with Gas Malaysia will set forth lEV’s vision to deliver natural gas as a clean and economical alternative energy to costly liquid fuels throughout the region, following our successful development of the two CNG supply chains in Indonesia and Vietnam.”