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Tuesday, 6 June 2017

(The Star) Enra partners Emrail in rail projects

PETALING JAYA: Enra Group Bhd has inked a shareholders agreement with Emrail Sdn Bhd to jointly set up a company and provide total engineering solutions and services for rail and track transportation projects in Malaysia.

In a filing with Bursa Malaysia yesterday, Enra said the collaboration to set up a joint venture (JV) company with Emrail was done via its unit Enra Engineering and Construction Sdn Bhd (EEC).

The JV company will provide engineering solutions and services that also involved civil works, rolling stock, project, asset management and maintenance services.

“The JV is in line with Enra’s plans to explore new businesses with growth potential.

“The intended activities of the JV company, if and when undertaken, are expected to contribute positively to the group’s profits and growth,” Enra said.

The JV company, in which EEC will hold a 51% stake and Emrail 49% interest, was not subject to any conditions precedent and none are set out in the agreement.

EEC will use internally generated funds for the initial investment in the JV company.

“The agreement is entered into to regulate the rights, duties and relationship of the shareholders of the JV company.

“The JV company shall have an initial issued and paid-up share capital of RM100 comprising 100 ordinary shares, with EEC holding a 51% stake and Emrail 49% interest,” Enra said, adding that the JV was not subjected to shareholders’ approval.

But the issued and paid-up share capital in the JV company may be increased depending on the financial requirement of the contract(s) that it may pursue in future, according to Enra’s filings.

Enra’s shares closed unchanged at RM2.80 yesterday. At this price, the company is worth RM377.77mil.