United Global forms JV with Taiwanese lubricant distributor

The JV's initial paid up capital is around $312,000.

United Global announced that United Oil Company (United Oil), a wholly-owned subsidiary, has entered into a shareholders agreement with Jin Wei Chuang Co. to incorporate a joint venture company in Taiwan.

The JV company will be incorporated with an initial paid-up capital of TWD7,000,000 (S$312,000) and with United Oil and Jin Wei Chuang having shareholding interests of 35.0% and 65.0%, respectively.

The principal activity of the JV company will be in distributing lubricants of United Oil’s in-house brands in Taiwan, and from time to time trading of third party’s lubricants.

Jin Wei Chuang is in the business of importing and distributing lubricants and automotive spare parts in Taiwan. Jin Wei Chuang is United Global's existing distributor in Taiwan. Save as disclosed, Jin Wei Chuang is not related to the Directors, controlling shareholders of United Global or their respective associates.

United Global believes that this JV will increase its presence in Taiwan and enable the Group to have greater access and first-hand knowledge of the Taiwanese market.

The investment in the JV company of TWD2,450,000 (equivalent to approximately S$109,168.45 as at the date of this announcement) will be paid in cash or in stock products of equivalent value supported by an auditor’s certificate) and funded through United Global’s internal sources.

The investment in the JV company is not expected to have any material impact on the net tangible assets per share or earnings per share of the Group for the current financial year ending 31 December 2016.