United Global unit enters JV in Australia

CATALIST-LISTED United Global has entered into a joint venture that will be involved in the importation and distribution of lubricant products in Australia.

United Global, a Singapore-based lubricant manufacturer and trader, said on Thursday that its wholly owned subsidiary, United Oil Company Pte Ltd, entered into a shareholders' agreement with Australian companies, PFR Management Pty Ltd and DP United Pty Ltd, to incorporate a joint venture company in Australia.

United Oil will hold a 35 per cent stake, while PFR and DP United will hold 55 per cent and 10 per cent, respectively.

The principal activity of the joint venture company will be in the importation and distribution of lubricant products manufactured by United Oil in Australia.

United Global said it believes this joint venture would allow the group to increase its presence in Australia, and enable it to have greater access and first-hand knowledge of the Australia market.

Its investment in the joint venture company of A$35,000 (S$35,200) will be paid in cash and funded through the group's internal resources.

In related news, United Global also announced on Thursday that Pheim Asset Management (Asia) Pte Ltd and Pheim Asset Management Sdn Bhd have agreed to purchase a total of 15 million United Global shares - representing approximately 4.7 per cent of the company - from its former non-executive chairman and controlling shareholder, Wiranto, at S$0.41 per share.