Sino Construction unit in renewable energy venture

Singapore

SINO Construction, which of late has been aggressively transforming itself into a resource play, on Tuesday announced that its wholly owned subsidiary, Magnum Energy, has entered into a joint-venture (JV) agreement with Primeforth Special Situation Fund, to establish and operate a company that generates and sells electricity from renewable energy sources, starting with palm biofuel.

Primeforth is a special purpose South Korean company incorporated in Cayman Islands. The JV company, to be named Magnum Modular Power Generation, will be incorporated in Singapore as a private company limited by shares, with an issued and paid-up share capital of S$1 million, comprising one million ordinary shares of S$1 each. Seventy per cent of the shares will be owned by Magnum Energy while Primeforth will own the remaining 30 per cent. The subscription of the shares in Magnum Modular will be funded from internal sources and is not expected to have any material effect on the net tangible asset and earnings per share of Sino Construction for the financial year ending Dec 31 this year.