Bermaz Auto Berhad entered in joint venture agreement with Kia Motors Corporation to undertake the production and/or assembly of vehicles under the Kia marque in Malaysia via a newly incorporated company to be known as Kia Malaysia Sdn Bhd. Upon incorporation, KMSB will have an initial share capital of MYR 3,000 comprising 3,000 ordinary shares issued at MYR 1.00 each, whereby BAuto and Kia Corp. will hold 1,000 (33.33%) and 2,000 (66.67%) KMSB Shares respectively.

Depending on the funding requirements of KMSB, the issued share capital of KMSB will be increased to MYR 60.0 million comprising 60.0 million ordinary shares at later stage. The KMSB Shares will be allotted and issued free from all encumbrances and rank pari pasu in all respects with all other KMSB Shares. BAuto will fund its portion (33.33%) of the share capital of KMSB of MYR 20.0 million from internal generated funds.

The Kia JV represents an opportunity for BAuto to broaden its group earnings base and to participate in the production and/or assembly of renown Kia in Malaysia which is targeted for local as well as export market. Kia Corp. intends to make KMSB the regional manufacturing hub for its Kia brand of vehicles in ASEAN countries and other potential markets.

The Kia JV will not have any effect on the issued share capital and major shareholders' shareholdings in BAuto and will not have any material effect on the net equity funds and earnings of the BAuto Group for the current financial year ending April 30, 2021.