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KUALA LUMPUR (July 30): Semico Capital Bhd (KL:SEMICO) is forming a joint venture to operate a family entertainment outlet at Pavilion Bukit Jalil.
In a Bursa Malaysia filing on Wednesday, the toy distributor said the outlet will operate arcade, card and prize machines, merchandise retail and related activities under a licensed brand.
It had entered into a joint venture and shareholders' agreement with Chan Kean Seng and Kosmare Sdn Bhd to undertake the venture, it added.
Kosmare is a privately held company principally involved in business management consultancy services and is owned by Chan.
Under the agreement, Semico will subscribe for 490,000 new shares in Kosmare, representing a 49% stake, for RM490,000, while Chan will subscribe for 510,000 shares, or the remaining 51%, for RM510,000.
Upon completion of the share subscription, Kosmare will become an associate company of Semico.
The parties also agreed to provide additional funding of between RM3 million and RM4 million for the venture, in proportion to their respective shareholdings.
Semico's contribution will amount to up to RM1.96 million, while Chan will provide up to RM2.04 million.
Semico said its funding will be made through the supply of arcade, card and prize machines, equipment and related items by its wholly-owned subsidiary, Semico Technology Sdn Bhd, as well as further equity contributions. Chan's portion will be funded through shareholders' loans.
The family entertainment outlet is targeted to commence operations on or before Dec 1 this year.
In a separate statement, Semico said it will provide technical expertise and operational support, including machine maintenance and servicing, as well as supply chain management and procurement, to support the outlet's operations.
Chan, meanwhile, will oversee the outlet's day-to-day operations, including customer experience management, landlord coordination, brand liaison and engagement with local regulatory authorities.
“This joint venture represents a strategic extension of the company’s existing business activities and provides an opportunity to broaden our revenue streams,” executive director and chief executive officer Tai Lee Chuen said.
Semico made its debut on the ACE Market of Bursa Malaysia on Jan 13 this year. The group distributes toys from 68 brands, including Pop Mart — known for its Labubu plushies.
Semico shares rose half a sen or 0.9% to close at 56.5 sen on Wednesday, giving the group a market capitalisation of RM203.4 million. The stock has gained more than 120% from its initial public offering price of 25 sen.
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