Ta Win ventures into cable manufacturing business

PETALING JAYA: Ta Win Holdings Bhd is teaming up with Justin Wong Chee Feng, Wong Ah Piaw and Latitude Technology Sdn Bhd to invest RM15 million in a new cable manufacturing business using electron beam irradiation technology.

In a filing with Bursa , Ta Win said its wholly owned subsidiary Cyprium Capital Sdn Bhd has entered into a cum shareholders agreement (JVSA) with the three parties to jointly invest in, setup and operate the new business via a special purpose vehicle (SPV) to be incorporated later, namely Cyprium Wire Technology Sdn Bhd.

Ta Win said the proposed JVSA would enable it to enter into a new manufacturing line through a strategic partnership with the other parties, to use their expertise in the field of electron bean irradiation technology.

This is expected to enhance the profitable growth of Ta Win, with the parties contributing the necessary expertise and skills set to create synergies that will enhance Ta Win’s existing business.

Under the JVSA, the parties will produce and commercialise irradiation cross-linked wire and cable products to support local original equipment manufacturer companies in automotive and home appliances sectors.

The parties also intend to promote, expand and solidify the competitive position, presence and particularly in automobile sector of cable market in Asian countries, with an aim to earn high profit margin through implementation of the technology in wire and cable manufacturing.

Cyprium Capital will hold 80% in the SPV while Latitude Technology will hold 10%. The remaining 10% will be held equally by the two individuals.

The total investment is estimated at RM15 million, to be funded by debt and equity combination. The parties agree to make capital contribution up to RM3 million.

If the proposed JVSA requires additional funding that exceeds the initial fund arrangement, such funding will be contributed by the parties in the form of debt.

Ta Win will fund its participation in the SPV through internally generated funds. The proposed JVSA is expected to contribute positively to the future earnings of Ta Win.

Source: The Sun Daily

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