Avanceon Saudi for Energy Company, a 100 percent wholly owned subsidiary of Avanceon Limited, and ZOMCO (Zamil Operations & Maintenance), a fully owned subsidiary of the Zamil Group, have entered into a Joint Venture Agreement to Expand Project Execution Footprint in the Kingdom of Saudi Arabia (KSA).
In a notice to Pakistan Stock Exchange (PSX), the company said that the Joint Venture Agreement will be conducted through a newly formed liability company named Avanceon Arabia InfoTech WLL.
This Joint Venture agreement gives a pathway for a positive impact on the group’s business and value for its shareholders, the company said further.
In a detailed press statement, Avanceon highlighted that it has a rich project execution footprint in the Middle East particularly in the KSA region. The company has been active in the region for more than a decade and has served top-tier clients and executed some of the largest government projects.
With highly trained human capital, strong technical know-how, a low-cost execution model, and strong OEM relationships, Avanceon aims to expand its services portfolio by collaborating with a reputable JV partner in KSA, the statement added.
ZOMCO has a strong local presence in KSA with a rich execution experience. Having been in operation for more than three decades, ZOMCO and Avanceon plan to create a synergetic partnership and make the JV a holistic solution provider. The JV will see both companies invest in sophisticated testing and manufacturing facilities, recruitment of human resources, and creation of a lucrative pipeline of projects within the water, transportation, and infrastructure sectors.
Under the agreement, Avanceon and ZOMCO will split the initial paid-up capital at 60 percent and 40 percent respectively. The validity of the JV will be 25 years and will commence on the effective date and will continue until terminated.
