The Board of Directors of AGV Group Limited announced that the company has entered into a memorandum of understanding on January 5, 2018 with Myat Mi Ba Company Limited to incorporate a new joint venture company in Myanmar for the purposes of providing hot dip galvanizing services to the Myanmar market. As agreed in the MOU and subject to the entry into the joint venture agreement, it is intended for the company to hold an effective interest of 80% in the Joint Venture Company and for MMB to hold the remaining 20% in the Joint Venture company. In addition, the understanding between the Parties pursuant to the MOU includes the option for MMB to acquire 25% of the shares held by the company in the Joint Venture company after two years from the date of the JV Agreement. It is intended that the Parties will contribute to the paid-up share capital of the Joint Venture company in proportion to the shareholding held by each Party and which will be determined at a later date. Parties have also agreed under the MOU to use their best efforts to negotiate and to execute the JV Agreement by 31 March 2018. Parties have also agreed to not negotiate or enter or continue any discussions with any other person or company or solicit, encourage, directly or indirectly, or furnish information to any other person or company with respect to a similar business arrangement for a period of three months commencing from the date of entry into the MOU. The incorporation of the Joint Venture company is intended to be funded through internal resources and the Joint Venture company is not expected to have any material impact on the earnings per share or net tangible assets per share of the company for the current financial year ending 30 September 2018.