Boldtek Holdings and Neo Group Limited have entered into a joint venture agreement (JVA) on August 28, where the parties intend to establish a joint venture company (JV Company) to carry out the business of property development, property investment and property management.

The Catalist-listed Neo Group Limited is a leading catering group in Singapore with almost three decades of experience in the food & beverage (F&B) industry.

To enter into the JV, Neo Group will be seeking its shareholders’ approval for the diversification of the NGL Existing Business to include the activities of property development, property investment and property management.

The NGL Existing Business already oversees a comprehensive suite of capabilities, service offerings under several major business groups including four main categories, food catering, food manufacturing food retail, supplies and trading.

The JV Company, which will be set up following the JVA, will have an initial issued and paid-up share capital of $1 million divided into one million shares, of which Boldtek Holdings and Neo Group Limited will own 50% each.

Under the agreement, the JV Company will have priority over any potential opportunities relating to property development, property investment and property management.

In a filing dated August 28, Boldtek Holdings says it was previously involved in property development, but general building and construction is still its core business. The company currently does not have any property development projects in the pipeline.

The proposed subscription will be funded through internal resources and is not expected to have any material impact on the net tangible assets (NTA) and earnings per share (EPS) of the company for the FY ended June 30.

Shares in Boldtek Holdings closed flat at 9.7 cents while shares in Neo Group Limited closed 3.5 cents higher or 6.3% up at 59.5 cents on August 28.