Perth-based steel building products company JV Global Ltd has entered into an agreement with two investors to form a joint venture company to service the Middle East and North Africa regions.
Below is the full announcement:
JV GLOBAL LIMITED is pleased to announce that it has entered into a Memorandum of Understanding with Mr Ali Rahma and Mr Jonathan Green both parties being residents in the United Arab Emirates with interests in the real estate sector within the United Arab Emirates and the Middle East.
The Memorandum of Understanding is for the parties to form a joint venture company for the purpose of establishing light gauge steel framing production facilities within the MENA region.
Under the Terms and Conditions of the Memorandum of Understanding JV Global Limited will hold a 40% shareholding in the new joint venture company. The business model will encompass Build, Operate and Transfer in conjunction with the establishment of the production facilities. The joint venture company will be the holding company for future joint ventures in one or more of the following countries : Morocco, Libya, Tunisia, Algeria, Egypt, Syria, Lebanon, Palestine, Sudan, UAE, Yemen, Qatar, Jordan, Saudi Arabia, Bahrain. Kuwait, Iraq and Iran.
Additional partners including developers, investors and Governments may be requested to participate in additional joint ventures at a country level with the agreement of the Board of Directors.
The joint venture company will be structured in a way that the exit strategy for the shareholders will be an Initial Public Offering (IPO) in either the United Kingdom or any other market that meets the strategy.
Further significant announcements pertaining to this matter will be made over the coming months.
