AsiaBio ... Mar 09

Asia Bioenergy Technologies Bhd's (AsiaBio) associate and investee company, Grand Inizio Sdn Bhd (Inizio) has entered into a strategic alliance and subscription agreement with the Philippines' Process Technologies Inc (PTI).

PTI had agreed to grant Inizio exclusive rights to its proprietary distillation, fractionation and esterification technologies specific for the geographical areas of Malaysia and Indonesia, and non-exclusively for the rest of the world.

Inizio had agreed to allot 900,000 new shares of RM1 each, representing 3.47% of the enlarged paid-up capital of Inizio, to Syno Prism Sdn Bhd (SynoPrism), the appointed allottee of PTI, for RM2.1 million or US$600,000 by way of capitalisation of an amount owing to PTI of an equivalent amount.

Inizio is a specialist technology provider for methyl ester processing technologies using its proprietary “Wet Trans” technology.

Inizio had on June 27, 2008 formed a strategic alliance with PTI to collaborate in the field of oleochemical and esterification technologies by way of combining their proprietary technology.

AsiaBio group, via its subsidiary Asia Bioenergy Research Sdn Bhd, currently holds a 20% stake comprising five million shares in Inizio.

The agreement presented an opportunity for Inizio to secure a long-term partner in its expansion plans into the oleochemical technology industry in Malaysia and Indonesia, and to add to its existing biodiesel related services and technologies.

Inizio would be able to take advantage of the expected growth in the oleochemical sector as well as in the biodiesel sector that was likely to emanate from the abundance in supply of palm oil feedstock in this region, particularly in Malaysia and Indonesia.

For the five months to May 31, 2008, Inizio posted revenue and net profit of RM22.41 million and RM6.25 million, respectively, with net assets of RM37.9 million.