Asdion Secures Tumpat Supply Base Agreement with Guaranteed RM151 Million Revenue
17:05 May 08, 2019  |  By SabahKini2
Asdion Secures Tumpat Supply Base Agreement with Guaranteed RM151 Million Revenue

Highlights of the deal include a RM10 million profit guarantee to Asdion for the year 2020, together with a guaranteed minimum 120,000 metric tons of dry bulk offtake per month for 5 years from the customers at RM21 per metric ton.

KUALA LUMPUR: ACE Market listed logistics company, Asdion Berhad, had on 6 May 2019, entered into a Joint Development Agreement (JDA) with Kingdom Infra Holdings Sdn Bhd (inclusive of call options to acquire Kingdom Infra).

By entering into a JDA, the company therefore rescinded the acquisition as per the Heads of Agreement (HOA) announced on 15 March 2019; the purpose of the said JDA is to commence business operations by the second half of 2019, whilst preserving the salient features of the acquisition - including valuation, profit guarantee and offtake volumes.

Highlights of the deal include a RM10 million profit guarantee to Asdion for the year 2020, together with a guaranteed minimum 120,000 metric tons of dry bulk offtake per month for 5 years from the customers at RM21 per metric ton.

Pengkalan Kubor, a town in Tumpat district of Kelantan, is the last station to connect the resumption of the RM44 billion East Coast Rail Link (ECRL) project. Indicatively, Phase 1 of the 688km rail line will be from Klang Valley to Kuantan; whilst Phase 2 will connect Kuantan to Kuala Terengganu. Phase 3 of the project will see the rail line connecting Kuala Terengganu to Kota Baru and finally to Pengkalan Kubor.

Pengkalan Kubor is located on the Malaysia-Thailand border, with the Golok River separating it from the Thai town of Tak Bai in Narathiwat province, Southern Thailand.

Asdion plans to finance the eventual purchase of Kingdom Infra through a combination of internally-generated funds, fund-raising exercises and bank borrowings.

The company expects the joint development agreement to contribute positively in the coming financial year.

 [READ- Kelantan dapat manfaat, saham Asdion naik selepas ambil alih Kingdom Infra RM66.5 juta]

 

 

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