BMS Holdings takes 60 per cent stake in Penang joint venture
The partners will put RM5 million into the business, combining a cash contribution from BMS Holdings with inventory from Wee Tatt's shareholders.
BMS Holdings Bhd has set up a joint venture to widen its northern Peninsular Malaysia operations, partnering with Wee Tatt Traders Sdn Bhd and the latter's shareholders. The new business, Jubin BMS (Wee Tatt) Sdn Bhd, will operate in Penang.
Ownership is split between BMS Holdings, with 60 per cent, and Wee Tatt's shareholders, with 40 per cent. BMS Holdings will inject RM3 million in cash, while the other shareholders will contribute RM2 million worth of inventory.
The venture will use Wee Tatt's current showroom and storage facility. Its sales activities will cover retail, wholesale and projects, offering kitchenware and bathware alongside tiles and stone surfaces. Plans also include transferring agreed business assets, employees and contracts from Wee Tatt, provided the necessary approvals and consents are obtained.
Management will be controlled by BMS Holdings, which can appoint the chairman and most board members. The group will consolidate the venture's financial results and finance its investment using internal resources, bank borrowing or both.
Managing director Ang Kwee Peng said the north was an important growth market for BMS Holdings. He said Wee Tatt's local presence would complement the group's product portfolio and industry experience of more than three decades. Wee Tatt's ceramics and related products business has operated in Penang for more than 36 years.
