KUALA LUMPUR (Oct 29): Sapura Resources Bhd has partnered with Dilog Training and Services Sdn Bhd to collaborate for the provision of maintenance, repair and overhaul (MRO) services for narrow body commercial aircraft in Senai, Johor.

Sapura’s wholly-owned unit, Mercu Sapura Sdn Bhd (MSSB), signed a joint venture (JV) and shareholders agreement today with Dilog, Sapura Resources said in a stock exchange filing.

MSSB also intends to offer a call option for an equity interest of up to 29% in the JV company to Invation Aero Sdn Bhd, a joint venture between Sapura Aero Sdn Bhd, another fully-owned unit, and Destini Aviation Sdn Bhd, a wholly-owned unit of Destini Bhd.

Although the initial equity structure of the JV company will see MSSB holding a 95% stake and Dilog holding a 5% stake, Dilog will have the option to acquire not more than 15% of the shares in the JV company from MSSB.

This will leave MSSB with a 51% stake in the JV while Dilog will hold the remaining 20%, assuming both options are exercised.

Barring any unforeseen circumstances, the agreement is expected to be completed by the third quarter of Sapura Resources’ financial year ending Jan 31, 2019, or at the end of Oct 2018.

It is not subject to the approval of shareholders or other relevant authorities.

Sapura Resources said it intends to finance the JV through internally-generated funds and does not expect any financial impact from the partnership in its current financial year.

However, it expects the JV to contribute positively towards the group’s earnings and net assets in the future, barring unforeseen circumstances.

Shares in Sapura Resources were untraded today. They last closed at 72 sen, leaving the group with a market capitalisation of RM100.51 million.