TURBO

0.650

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MEMORANDUM OF UNDERSTANDING TURBO-MECH BERHAD ("TURBO" OR "THE COMPANY") - MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN TURBO-MECH ASIA PTE LTD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, BROOK CROMPTON SERVICE TECHNOLOGY PTE LTD AND ZHEJIANG IMOTORLINX TECHNOLOGY CO., LTD

TURBO-MECH BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
TURBO-MECH BERHAD ("TURBO" OR "THE COMPANY")
- MEMORANDUM OF UNDERSTANDING ENTERED INTO BETWEEN TURBO-MECH ASIA PTE LTD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, BROOK CROMPTON SERVICE TECHNOLOGY PTE LTD AND ZHEJIANG IMOTORLINX TECHNOLOGY CO., LTD

1. INTRODUCTION

The Board of Directors of Turbo wishes to announce that Turbo-Mech Asia Pte Ltd (“TMA”), a wholly-owned subsidiary of Turbo had on 10 November 2023 entered into a Memorandum of Understanding (“MOU”) with Brook Crompton Service Technology Pte Ltd (“BC”) and Zhejiang iMotorLinx Technology Co., Ltd (“iMotor”) (collectively as “Parties” and any one of them as “Party”) to set out the basis of co-operation and collaboration between Parties (the “JV”) to undertake projects and provision or sale of the products and services throughout ASEAN with respect to full service electric motor and rotating equipment, IOT smart full life cycle solution and engineering and retrofit solution for energy saving (the “JV Business”), through a joint venture company (“JVC”) to be established.

 

2. DETAILS OF THE PARTIES

2.1 INFORMATION ON BC

BC is a private limited liability company incorporated in Republic of Singapore with its registered office and principal place of business at 19 Keppel Road, #08-01 Jit Poh Building, Singapore 089058.

BC’s holding company, Brook Crompton Holdings Ltd., an established electric motors company, is listed on Singapore Stock Exchange. The trademark BROOK CROMPTON brand has been at the forefront of major technological breakthroughs in this arena, and is active in the supply of high-efficiency electric motors that also fulfil client needs for reliability and cost-effectiveness.

2.2 INFORMATION ON iMotor

iMotor is a private limited liability company incorporated in People’s Republic of China with its registered office and principal place of business at ZheDaWangXin Technology Park, Bld.16, East Fuxing Road, Shaoxing, Zhejiang, China.

iMotor is involved in digital transformation and smart manufacturing and has created the iMotorLinx Industrial Internet platform, which provides digital products and business operation solutions for the IT industry, including upstream and downstream sectors worldwide.

 

3. SALIENT TERMS OF THE MOU

3.1 OBJECTIVES OF THE MOU

The MOU sets out the terms and intentions of the Parties to establish a JVC as the operating entity to undertake the JV Business in the ASEAN region. The Parties will work closely and effectively collaborate with one another, so that the JVC is able to leverage upon the resources, skills, expertise, experience, and capabilities of each Party to market and carry out the joint venture business.

3.2 DURATION OF THE MOU

The MOU shall commence on 10 November 2023 (“Effective Date”) and shall remain valid and in force for a period of three (3) months from the Effective Date. Either Party may terminate the MOU upon thirty (30) days’ notice in writing. The MOU may be extended by written agreement of the Parties.

3.3 NON-BINDING EFFECT OF THE MOU

The MOU serves as a record of the Parties’ intentions and as a basis for more in-depth discussion and preparation of the definitive legal agreements in respect of the JV and does not constitute or create, and is not intended to constitute or create, any legally binding obligations. The MOU will also not give rise to any financial obligation by one Party to the other.

 

4. RATIONALE OF THE MOU

The purpose of the MOU is to undertake a collaboration for leveraging the resources, skills, expertise, experience, and capabilities of each Party to secure and/or carry out projects, and engage in related business activities, and also to engage in the marketing and supply of products and services within ASEAN, based on the collective capabilities and agreements between the Parties.

 

5. FINANCIAL EFFECTS

The MOU will not have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of the Company for the financial year ending 31 December 2023.

 

6. RISK FACTORS

The risk factors involved in this MOU at this juncture are expected to be minimal and in the event TMA enters into a future definitive agreement with BC and iMotor, the Board of Directors and Management of the Company will exercise due care in considering the associated risks and benefits.

 

7. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM

None of the Directors and/or major shareholders of Turbo and/or persons connected to them have any interests, direct or indirect, in the MOU.

 

8. STATEMENT BY DIRECTORS

Having considered all aspects of the MOU, the Board of Directors of the Company is of the view that the MOU is in the best interest of Turbo.

 

9. APPROVAL REQUIRED

The MOU is not subject to approval of the shareholders of the Company and any relevant government authorities.

 

 

This announcement is dated 10 November 2023.

 






Announcement Info

Company Name TURBO-MECH BERHAD
Stock Name TURBO
Date Announced 10 Nov 2023
Category General Announcement for PLC
Reference Number GA1-09112023-00006