KUALA LUMPUR (Nov 14): HeiTech Padu Bhd will be teaming up with Indonesian company PT Kirana Investama Nusantara (PT KIN) to set up a joint venture company in Indonesia to explore business opportunities there, including the development and deployment of a syariah compliance cooperative system.

In a stock exchange filing today, the company said the cooperative system or Baitulmal Wat Tamwil, will earn revenue on a transactional basis.

The JV Company PT Desa Tech Nusantara shall be formed as both the parties seek to optimise the combined strengths of each partner in their respective fields to provide better solution for overseas market to embark on international projects or initiatives, said HeiTech Padu.

HeiTech Padu will hold a 49% stake in the JV company, while the remaining 51% stake will be held by PT KIN.

HeiTech Padu’s projected cash outlay for the investment in the JV Company, which will be satisfied via internally-generated funds, is estimated to be about IDR3 billion (or about RM900,000).

Upon the formation of the JV Company, HeiTech Padu will be responsible for the system and application development, project management and team deployment while PT KIN will look after the market and business development aspects.

While the proposed JV will not have any material effect on the company’s consolidated net assets, earnings and earnings per share in respect of the financial year ending Dec 31, 2019, HeiTech Padu said the proposed JV is expected to contribute positively to the Company’s financial performance in the future.

Shares of HeiTech Padu closed unchanged at 90.5 sen today, valuing the company at RM91.61 million. Year to date, the counter has surged some 113% from when it was trading at 42.5 sen.