A subsidiary of Singapore-based water company Moya Holdings Asia has entered into an agreement with its Philippine counterpart to set up a joint venture in Indonesia covering water-related services.
Detailing this in a release to the Singapore Exchange after market close on Wednesday, Catalist-listed Moya said that the joint venture will be tentatively called PT Water Tecnologia Indonesia.
It will be engaged in the provision of water and wastewater services and investment in Indonesia, which include pipe network design and installation, non-revenue water management, and wastewater management.
Through its subsidiary PT Moya Indonesia, Singapore-based Moya will hold 51 per cent of Water Tecnologia. Maynilad Water Services in the Philippines will hold the other 49 per cent.
Management of the joint venture will be vested in a board of directors composed of two directors. Maynilad will appoint the president-director who will act as the managing director and technical operation head of Water Tecnologia. Moya Indonesia will appoint the director who will be in charge of the finance, accounting, logistics, procurement, human resource and general affair matters.
Principal licence of the joint venture is subject to the approval of Indonesia’s Investment Coordinating Board, and the company’s incorporation needs to have the approval of Indonesia’s Ministry of Justice.
Incorporation of the joint venture will be funded through internal resources of the Moya group and is not expected to have any material impact on the earnings per share or net tangible assets per share of the group for the current financial year ending Dec 31, 2016, said Moya.
Text by Soon Weilun / Retrieved from The Business Times