The JVCo will be responsible for producing and supplying a range of concrete-related products for the Malaysian market, with operations to be aligned with Tanco’s broader construction and building materials business.

Tanco said TPISB will appoint three directors to the board, while King Well will appoint two.

The CEO or managing director will be nominated by TPISB, while the general manager will be appointed by King Well.

The JV agreement includes restrictions on share transfers without mutual consent and non-compete provisions covering Malaysia.

The venture is subject to several conditions precedent, including agreement on project feasibility and gross development cost within four months, as well as regulatory approvals from Malaysian authorities within six months thereafter.

If conditions are not met within the stipulated timeframe, the agreement will lapse and the JVCo may be dissolved or King Well’s stake transferred to TPISB at cost, subject to agreement.

Tanco said the joint venture is intended to strengthen its internal supply chain for construction materials and support upcoming development projects, while also tapping broader demand in the Malaysian construction sector.

The group said the proposal will not have any material impact on its share capital, net assets or earnings for FY2026, as it does not involve new share issuance.

The board said it is satisfied that the joint venture is in the best interest of the company and its shareholders.