Brook Crompton Holdings AWC has announced that its wholly-owned subsidiary Brook Crompton Services Technology has entered into a joint venture (JV) agreement with TurboMech Asia and Zhejiang iMotorLinx Technology Co.
The announcement follows the memorandum of understanding (MOU) signed among the three parties announced on Nov 10 to undertake projects and the provision or sale of products and services throughout Asean.
These will include full service electric motor and rotating equipment, Internet of Things (IOT) smart full life cycle solutions and engineering and retrofit solutions for energy saving, through a JV company to be established.
After the commencement of the JV, all three parties will contribute a total of $3 million as consideration for their respective subscription, allotment and issuance of ordinary shares in the JV company at $1.00 per share.
Brook Crompton Services Technology and TurboMech Asia will each have a 45% stake in the JV company, with the remaining 10% going to Zhejiang iMotorLinx.
On the first anniversary of the JV, the parties will increase the issued and paid up share capital of the JV company by $2 million in the same proportions to an aggregate amount of $5 million including the initial investment.
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Brook Crompton says the investment in the JV company will be funded by its internal resources.
Based on the company’s calculations, had the JV commenced during the FY2022 ended Dec 31, 2022, there would have been no financial effects to its net tangible assets (NTA) per share or earnings per share (EPS).
Shares in Brook Crompton closed unchanged at 50 cents on Dec 5.
