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KTL Global unit enters service pacts worth 25m yuan with 3 China utility operators
OFFSHORE and marine equipment dealer KTL Global's 80 per cent-owned subsidiary, Bluegas Private Limited, has entered into one-year service agreements with three Chinese utility operators.
The three operators will pay Bluegas a quarterly service fee, KTL Global said in a bourse filing on Tuesday.
Some 25 million yuan (S$4.9 million) is payable by the three parties, with one operator having paid 7.5 million yuan as at June 30, added the mainboard-listed firm.
The operators were assigned to Bluegas by Chinese technology company Shenzhen Green Leopard Medical Technology Co Ltd, as part of a non-binding memorandum of understanding (MOU) signed on May 2 by both companies.
Under the MOU, Bluegas will provide branding, technical, operation and procurement services to at least 30 Chinese utility operators to be secured and assigned to Bluegas by Shenzhen Green Leopard.
The service deals are expected to have a positive impact on the net tangible assets per share and earnings per share of the group for the current financial year ending Dec 31, 2019, said KTL Global.
Watch-list stock KTL Global closed up S$0.003 or 10 per cent at S$0.033 on Monday.