Sysma forms JV to manufacture and trade refined petroleum products

SEPL central to its diversification strategy.

In a release, Catalist-listed Sysma Holdings Limited (Sysma) announced that its subsidiary, Sysma Land Pte Ltd (SLPL), has entered into a shareholders and joint venture agreement with an unrelated third party, Encore Investment Pte. Ltd. (Encore) to own and operate a joint venture company, Sysma Energy Pte. Ltd. (SEPL). SEPL will be engaged in the business of manufacturing and trading of refined petroleum products and the provision of services related to this sector.

SLPL is a 100% subsidiary of Sysma. The JV Co is a Singapore incorporated private limited company and SLPL will own 51% of SEPL. The Group will be using its internal resources to fund the investment in cash. As a result, SEPL will become a subsidiary of Sysma.

Mr. Sin Soon Teng, Executive Chairman and Chief Executive Officer of Sysma Holdings Limited, said: “Sysma has been actively seeking out opportunities to diversify into other sectors. This joint venture will enable Sysma to diversify its earnings base and not to be too reliant on the construction and property development sector. I am confident that this joint venture will help to boost the Group’s earnings in time to come and thus will help to enhance shareholders’ value.”

The Group is principally engaged in providing building construction services to the private sector in Singapore and is typically appointed as the main contractor for its projects. Since 2012, Sysma has also diversified into property development and has started marketing its first project, a mixed development of shop units and studio apartments in Race Course Lane.

This joint venture is not expected to have any material impact on the earnings per share or the net tangible assets per share of the Company and the Group for the current financial year ending 31 July 2014. None of the directors or substantial shareholders of Sysma has any interest, directly or indirectly, in the above joint venture.