Tiong Nam Logistics Holdings Bhd has entered into a preliminary collaboration agreement with a unit of Johor Corp (JCorp) to jointly develop a logistics hub on a 300-acre plot of land in Sedenak Tech Valley, Johor.
In a Bursa filing on Monday (Aug 15), Tiong Nam said the agreement is subject to further exploration of the feasibility and viability studies on the project, before entering into any definitive agreement.
Under the preliminary deal, JCorp’s wholly-owned unit JLand Group Sdn Bhd agrees to provide 300 acres of land for the development and construction of logistics hubs, while Tiong Nam will implement the project and supervise the day-to-day progress.
“The development and/or construction of the logistics hub will be in mutually acceptable locations by the parties in writing,” Tiong Nam said in its stock exchange filing.
“Tiong Nam will study the integrated township of the proposed land and will develop a comprehensive logistics hub outlining the business model, development timeline, and project management requirements,” it added.
Share price of Tiong Nam, which has gained 18% so far this month, advanced one sen or 1.47% to 69 sen on Monday, giving it a market capitalisation of RM364.2 million.
