Diversified non-bank lender Financial Resources Ltd's water management subsidiary Sovereign Hydrology Pty Ltd plans to start a Singapore-based joint venture.
Diversified non-bank lender Financial Resources Ltd's water management subsidiary Sovereign Hydrology Pty Ltd plans to start a Singaporean-based joint venture.
Sovereign has signed a memorandum of understanding with a Singaporean project management group, giving the new joint venture rights to operate its patented civil engineering water treatment system NOH20 in Singapore, Malaysia, Vietnam and Indonesia.
Without naming the partner, FRL managing director Barry Samuels told the market the project manager had experience in process design, engineering, construction and property investment.
NOH20 is used mainly in the construction sector for sealing leaky building foundations.
The latest success for Sovereign comes after FRL's recent expansion into national lending business Quik Rent, in which it took a 75 per cent stake in November last year.
The full Australian Stock Exchange announcement can be read below.
Financial Resources Limited (ASX: FRL) is very pleased to announce that its related company, Sovereign Hydrology Pty Ltd, has this week signed a Memorandum of Understanding (MOU) with a Singapore based commercial project management and property development company. The agreement covers the rights to operate Sovereign's world-class patented product and treatment system (NOH20) within the countries of Singapore, Malaysia, Vietnam and Indonesia. The MOU provides for the establishment of a new Singapore registered corporate entity which will be owned 50% by Sovereign Hydrology Pty Ltd and 50% by the Singapore property company. Confidentiality restraints require that the Singapore property company not be named until the formal joint venture agreement is finalised. In announcing this significant agreement Barry Samuels, Managing Director of Financial Resources Limited, said "the exploitation of the NOH2O product and systems into the larger commercial and international markets is an exciting and significant achievement for Sovereign Hydrology. This is the first step to realising the expectations held by the FRL board that the NOH2O product and systems has international demand and opportunities." The Singapore partner is very experienced in providing a range of services including process design, engineering, construction and project management and property acquisitions and investments in the retail, commercial and hospitality industries. Their technical and engineering expertise together with its established knowledge of the region should prove to be invaluable in marketing and applying NOH2O. "We were always aware of the potential commercial value of the Patent and that the national and international applications for the NOH2O treatment as its application is wide-ranging and spans large scale, construction, mining, engineering and residential applications," Mr Samuels said.
"We are confident the targeted work in Singapore already identified for the Singapore Joint Venture will further enhance the FRL business to the benefit of our shareholders." In May 2005 Sovereign entered into a Joint Venture agreement with Financial Resources Limited to create Sovereign Hydrology Ltd. The directors of the South African based business now reside in Perth and Australian and International revenues and operations will be controlled from Perth through the Sovereign Joint Venture.
