PMW International Berhad announced that it has entered into a Share Subscription and Shareholders’ Agreement with Sarawak Timber Industry Development Corporation in relation to the subscription of 20% ordinary shares and redeemable preference shares in PMW Winabumi (Sarawak) Sdn. Bhd. a wholly-owned subsidiary of the company.
The Agreement facilitates STIDC’s participation in PMWWS as an equity partner, which has been established to undertake the development and operation of a new manufacturing facility in Tanjung Manis, Mukah, Sarawak. PMW will continue to lead the strategic direction, management and operations of PMWWS. The participation of STIDC reflects strong support from a Sarawak state agency towards the development of industrial infrastructure in the region.
The Agreement is aligned with PMW’s strategy to strengthen its presence in East Malaysia and expand its manufacturing capacity, positioning the Group to capitalise on growing demand driven by infrastructure development, electricity grid expansion, and digital economy and 5G rollout initiatives in the state
PMWWS will serve as the vehicle to develop and operate a new concrete piles and poles manufacturing facility in Tanjung Manis, Mukah, Sarawak. The participation of STIDC as a strategic state-linked stakeholder provides local institutional support and facilitates alignment with the State’s industrial development plans.
Upon completion of the initial share subscription, PMW will hold an 80% equity interest in PMWWS, while STIDC will hold the remaining 20% equity interest.
Under the Agreement, STIDC will contribute a parcel of industrial land for the development of the facility in Tanjung Manis, Mukah, Sarawak, which forms part of the overall funding and capital structure of the project.
The funding structure is intended to support the development and operations of the manufacturing facility. Proceeds raised from the subscription of RPS will be utilised for capital expenditure, including construction, machinery and equipment, as well as working capital requirements.