KUALA LUMPUR: BMS Holdings Bhd has formed a joint venture with Wee Tatt Traders Sdn Bhd and its shareholders to expand its presence in the northern region of Peninsular Malaysia.
The joint venture will be undertaken through Jubin BMS (Wee Tatt) Sdn Bhd, which is 60 per cent-owned by BMS Holdings and 40 per cent by Wee Tatt's shareholders.
The joint venture company will be involved in the retail, wholesale and project sales of tiles, stone surfaces, bathware and kitchenware.
The partners will contribute a total of RM5 million to the joint venture, comprising RM3 million in cash from BMS Holdings and RM2 million in inventory from Wee Tatt's shareholders.
Wee Tatt's agreed business assets, contracts and employees are also intended for transfer to the joint venture, subject to the necessary consents and approvals.
The joint venture will operate from Wee Tatt's existing retail showroom and storage facility in Penang, providing an established operational base and workforce.
Wee Tatt, which trades in ceramics and related products, has been operating in Penang for more than 36 years.
BMS Holdings managing director Ang Kwee Peng said the northern region represented an important growth market for the company.
He said the partnership would combine Wee Tatt's local market presence with BMS Holdings' more than three decades of industry experience and broad product portfolio.
BMS Holdings will have management control of the joint venture, including the right to appoint a majority of its board members and the chairman.
As a 60 per cent-owned subsidiary, Jubin BMS' financial results will be consolidated into BMS Holdings' financial statements.
The company will fund its investment through internally generated funds and/or bank borrowings.
The partnership extends BMS Holdings' footprint beyond its existing network in Johor, Selangor, Kuala Lumpur, Negri Sembilan and Sarawak.
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