SITC Logistics will hold 49% while Viboon Enterprise will hold the rest, the company said in a stock market announcement.
The joint venture company will be established in Thailand with a registered capital of THB25m ($760,616) with SITC Logistics' share coming up to HKD2.9m ($373,862) to be paid in cash.
As and when it will be permitted under the laws of Thailand, SITC Logistics will be entitled to increase its shareholdings to over 60%, the company added.
SITC Logistics' investment in the venture will be funded by internal resources of the Group. Upon formation of the JV Company, the financial results of the JV company will be included into the consolidated financial statements of the group as a joint venture.
The joint venture will have an operation term of 10 years commencing from the date on the first business license being issued by the Administration Department in Thailand. The principle business of the JV Company is to promote and develop logistics park services in Thailand by utilizing the advanced technological and managerial experience of SITC Logistics and Viboon Enterprise within the industry, the company said.
SITC Logistics and Viboon Enterprise will cooperate with each other regarding the operation of the depot and related activities of the JV Company. SITC Logistics will, among others, be responsible for introducing personnel management, providing administration experience and training to employees and providing support for the development of IT systems for the JV company and providing support to the business of the JV company by arranging containers pickup and drop off.
Whilst Viboon Enterprise will, among others, be responsible for obtaining relevant local approvals and licenses for the operation of the JV company, applying for necessary work permits and ensuring that sublease of land to operate the JV company’s activities are permitted.
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