Electrical and mechanical engineering services provider Kejuruteraan Asastera Bhd signed a term agreement in an effort to venture into the robotics distribution business.
The agreement will be executed with YL Global Ventures Sdn Bhd (YLGV) which will see the merger of a JV company called KAB Robotic and Automation Solutions Sdn Bhd.
It will also cover a total initial equity capital of RM100,000 and further share capital to be retained a maximum of RM2 million.
Under the JV, Asastera Engineering will own a 70% stake in KAB Robotics while YLGV will acquire the remaining 30%.
Through the collaboration, they will jointly seek business opportunities to establish and expand the first robotics hub in Malaysia.
As a result, it will leverage YLGV's sole distribution rights with OTSAW Technology Pte Ltd and proprietary robotic solutions.
The JV is a new Asastera Engineering business venture to grow into a robotics solutions business and expand the existing electrical and engineering business divisions.
At 4.15pm, the share price of Asastera Engineering remained unchanged at RM0.38 with a market capitalization of RM643.03 and 26.72 million shares changing hands.
