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KUALA LUMPUR (March 12): Nexgram Holdings Bhd has inked a strategic cooperation framework agreement with a Chinese-listed group to undertake operations in the field of communications cables.
The group said the tie-up with Jiangsu Tongguang Electronic Wire & Cable Co Ltd would allow it to carry out all-round operations in radio-frequency coaxial cables, high temperature resistant wires and cables for aerospace, aluminium-alloy electrical cables, submarine optical fiber cables and other optical cables along power transmission lines.
“The partnership is in line with the China government’s ‘one belt one road’ US$1 trillion economic investment initiative with the national power grid, and 5G infrastructure expenditure in the region playing a major part in the master plan,” Nexgram said in a filing with Bursa Malaysia.
The agreement includes products research and development, distributions, projects joint venture, maintenances and supports, and other strategic partnership cooperation in Southeast Asian countries.
The agreement inked with a subsidiary of Jiangsu Tongguang is for a duration of one year with possible renewal.
As Malaysia is a new market for Jiangsu Tongguang, Nexgram will be the sole distributor and hub for the Chinese group in Malaysia.
The deal, said Nexgram, is not expected to have a material effect on its earnings per share, net assets and gearing for the financial year ending July 31, 2018.
Nexgram’s long-term strategic business representatives in Southeast Asia, especially in Indonesia, Thailand, the Philippines, Vietnam and Malaysia, provide support for Jiangsu Tongguang’s Southeast Asia expansion plan
Nexgram’s share price closed one sen or 25% higher at 5 sen today, giving it a market capitalisation of RM94.11 million.
Source: http://www.theedgemarkets.com/article/nexgram-partners-chinese-firm-operate-communication-cables