Catalist-listed Serial Achieva has entered into a joint venture agreement with A-Speed Infotech to establish a joint venture company, Achieva Tech Allianz (Achieva Tech).
Achieva Tech will focus on the business of the distribution of information technology products and peripherals, as well as system integration services in Asia, excluding Singapore, notes a bourse filing dated Sept 17.
A-Speed Infotech is a Singapore service provider in system integration, that specialises in information and communication technologies and industrial integration solutions. It comprises a footprint spanning across more than 30 countries.
Serial Achieva says that this joint venture is expected to “further expand and strengthen” the group’s product portfolio, particularly in the artificial intelligence (AI) space, allowing it to better meet the evolving needs of its customers in today’s dynamic market.
They add that this venture is “complementary” to its consumer products distribution business and “aligns with its strategy to establish itself as a leading reseller and distributor” of consumer and enterprise IT components.
Following the agreement, Achieva Tech has been incorporated in Singapore as of Sept 17, with an issued and paid-up share capital of $200,000 comprising 200,000 ordinary shares. Serial Achieva and A-Speed Infotech hold shares of 55% and 45%, respectively.
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Accordingly, Serial Achieva and A-Speed Infotech’s contribution to the issued and paid-up share capital of Achieva Tech stands at $110,000 and $90,000 respectively.
Serial Achieva’s contribution to the issued and paid- up share capital of Achieva Tech is expected to be funded through the Group’s internal resources.
The group adds that the joint venture is not expected to have material impact on the earnings per share and the net tangible assets per share of Serial Achieva for the financial year ending Dec 31.
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Prior to the agreement, the group says that A-Speed Infotech, its respective directors and shareholders are independent and unrelated parties to Serial Achieva, its directors, shareholders and respective associates. They add that A-Speed Infotech has not had prior business, commercial or trade dealings with Serial Achieva.
Shares in Serial Achieva closed flat at 15 cents on Sept 17.
