KUALA LUMPUR (Oct 28): Sersol Bhd has teamed up with Thailand-based Natural and Premium Foods Co Ltd (N&P) to distribute N&P's organic food products in Malaysia.

In a Bursa Malaysia filing on Friday (Oct 28), Sersol, whose principal activities involve coatings, thinners and industrial chemicals, said it has entered into a heads of agreement (HOA) with N&P to jointly invest and set up a new joint venture (JV) company to distribute N&P's products in Malaysia. The HOA is effective for three months.

"The HOA is to pave the way for Sersol and N&P to govern their respective rights, duties and obligations with respect to the JV company and to provide support based on their expertise in certain matters in connection with the management and operation of the company," it added.

The HOA is not expected to have any material effect on Sersol's earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2022.

Sersol shares closed up 0.5 sen or 3.45% at 15 sen on Friday, bringing the company a market capitalisation of RM88.82 million.