Sapura Resources Berhad (“SRB”) had, on 3 July 2019, obtained its shareholders’ approval to diversify its and its subsidiaries’ principal activities to include the sale and service of products, engines and parts, and provision of related value-added services (“Proposed Diversification”).
 
The Proposed Diversification will be carried out through a conditional subscription and joint venture agreement dated 15 May 2019 (“JVA”) amongst SRB, SRB One Sdn Bhd (a wholly-owned subsidiary of SRB), MTU Asia Pte Ltd (an indirect wholly-owned subsidiary of Rolls-Royce Power Systems AG (“RRPS”)) and MTU Power Systems Sdn Bhd (“MPS”).
 
Pursuant to the JVA, MPS, being the joint venture vehicle, has entered into a sole-distributorship agreement with RRPS whereby MPS will undertake, amongst others, the sale and service of “original equipment packaging solutions” in marine (both naval and commercial), rail, construction and industrial, mining, agriculture, oil and gas, and power generation market sectors in Malaysia.
 
Skrine acted for SRB in the transaction.  The team comprised Phua Pao Yii (Partner) and Associates, Alex Lian, Tan Wei Liang and Ting Shi Jing.