Pulai Springs in JV bid for project in Kunming, China

KUALA LUMPUR: Pulai Springs Bhd has entered into a proposed joint venture with four companies incorporated in China to jointly bid for the acquisition and development of a 280-acre land located at the Guandu district in Kunming, China.

In a Bursa announcement on Nov 16, Pulai Springs said the company had on Nov 13 signed an agreement for the establishment of a joint venture to jointly bid for the land from the government of Kunming.

The respective parties’ percentage equity are Guofa Holding Co, Ltd (45%), Zhejiang Tian Yi Group (25%), Jia Yuan Group (10%), Hangzhou Sandun Wenzhou Village Development Co, Ltd (10%) and Pulai Springs Bhd. According to Pulai Springs, the proposed JV is to complement the Group’s corporate strategy of pursuing new business opportunities to enhance returns from investments.

Each of the parties shall remit the capital injection, whenever required, and share the profit/loss arising from the proposed JV in accordance with the percentage equity participation.

If the proposed JV is unsuccessful in the bidding exercise, the parties shall bear the preliminary costs incurred in accordance with the respective percentage equity participation.

The proposed JV is currently at the initial stage of submitting the bid. If it is successful in its bid, the operation will commence after the letter of award is awarded.