Ageson partners with Singapore firm to undertake RM330m sand supply project

KUALA LUMPUR (April 17): Ageson Bhd, formerly known as Prinsiptek Corp Bhd, is partnering with Singapore firm Navis Marinus Private Ltd (NMPL) to jointly undertake the supply and delivery of sand worth S$107.64 million (about RM330.35 million).

In a filing with the local bourse, Ageson said its wholly-owned Esa Pile Sdn Bhd and NMPL inked a term sheet today to set up a 51:49 joint venture (JV) company to deliver sand from the Philippines to JTC Corp in Singapore.

The three-year contract was awarded to NMPL by JTC Corp, a Singapore government agency in Singapore that spearheads the planning, promotion and development of a dynamic industrial landscape.

NMPL is principally involved in the wholesale of construction materials, hardware, plumbing and heating equipment and supplies such as cement and sand.

Under the term sheet, Esa Pile will be responsible for providing project management services to the JV company and any required assistance and relevant expertise to ensure the smooth implementation and completion of the project.

NMPL, on the other hand, will be responsible to submit, apply and obtain the requisite approvals (including all kinds of licences, permits and consent) from the relevant authorities for the project, to ensure a good standard of sand quality to be supplied to JTC Corp, as well as timely delivery of the sand to designated areas in Singapore.

“Upon execution of the definitive agreement between the parties, the proposed collaboration is expected to contribute positively to the company’s future earnings, earnings per share and enhance the consolidated net asset of the company,” said Ageson.

At the time of writing, Ageson shares have jumped 4 sen or 53.33% to 12 sen, giving it a market capitalisation of RM707.97 million, after some 90.14 million shares were traded.