EGP Infrastructure Investments, a subsidiary of EGP Energy (SGX:EGX), has entered into a joint venture agreement with Kum Fatt Engineering, a wholly-owned subsidiary of Malaysia-listed UUE (KLSE:UUE), according to a Tuesday filing to the Singapore stock exchange.

EGP Energy's shares were up over 2% in Wednesday's trade.

The two parties will incorporate a joint venture company in Malaysia, proposed to be named EGP-UUE Power System Engineering, with an initial paid-up capital of 1 million ringgit.

Under the pact, EGP Infrastructure will hold a 60% equity stake in the joint venture company, while KFE will own the remaining 40%.

The joint venture company will provide turnkey power grid infrastructure solutions, including construction, development and delivery of power grid infrastructure in Malaysia, as well as the construction and commissioning of transmission and distribution systems.