Bintai Energy, a subsidiary of Bintai Kinden has been appointed as an exclusive distributor for pipes and valves supplied by Gerab Group in Malaysia and Brunei.
Bintai Energy has today entered into a Distribution Agreement with Gerab National Enterprises LLC (Gerab) for the distribution of pipes and valves for oil and gas business supplied by the latter for formalisation of the appointment.
Under the Distribution Agreement, Gerab will provide marketing, promotional and other information in relation to the products to support Bintai Energy in managing its distributorship during or after delivery of the products.
The agreement is for a one-year period and subject to the terms therein, unless termination notice in writing is given by either party 30 days prior to the termination.
“The Agreement will enable Bintai Energy and Gerab to render their full cooperation within their framework of their domestic laws, rules, regulations and policies to market and sell the products to meet the mutually agreed upon sales goals for future revenue growth of Bintai Group,” Encik Azri Azerai, Executive Director of Bintai Kinden said.
“Having considered all the relevant aspects including the rationale and effects of the Agreement, the Board of Directors of Bintai is of the opinion that the Agreement is in the best interests of Bintai Group as it venture into oil and gas business,” he added.
Gerab is the leading bulk stockist and supplier of seamless pipes, welded pipes and allied components in the Middle East for oil and gas, power generation, water desalination, petrochemical process, mining, construction and ship-building industries worldwide.
The agreement is not expected to have any material effect on the issued and paid-up share capital of Bintai Kinden but is expected to contribute positively towards the future earnings of the Group.
