MQ Technology Bhd’s (MQTech) wholly owned unit Microlead Manufacturing Sdn Bhd has entered into a joint venture (JV) with Hong Kong-based JD Resources International Ltd (JD) to acquire a glove company.
MQTech, an industrial mould maker, said in a bourse filing today that its JV with JD would see both businesses venture into the manufacturing and marketing of gloves.
The purchase price would be negotiated and agreed upon by both parties at a later date, MQTech said.
JD, said MQTech, was in the trading business, boasting a revenue around US$150 mil (RM639 mil) to US$300 mil (RM1.28 bil) per year in “recent years” and possessed the know-how and technical information about the manufacturing of personal safety apparels including nitrile rubber gloves.
MQTech and JD will subscribe and participate in the capital of the JV company at all times in the proportions of 30% and 70% respectively.
All measures and expenses relating to the acquisition of the glove company should be borne and paid for by both parties in the same proportion earlier mentioned, MQTech said.
Further, according to MQTech, both parties mutually agreed that the mould maker should be entitled to increase its participation in the equity capital of the JV company by another 30%.
This would be done by acquiring 30% of equity capital held by JD at a fair market value, MQTech added.
The counter’s shares trended 9 sen or 5.88% higher after the midday break today. – July 15, 2020
