VERTICE-VIZIONE JV WINS RM815M JOB IN PENANG MEGA INFRASTRUCTURE PROJECT

Syahirah Syed Jaafar / theedgemarkets.com
September 03, 2018 19:05 pm +08

KUALA LUMPUR (Sept 3): A joint venture between Vertice Bhd and Vizione Holdings Bhd has won a RM815 million contract from Consortium Zenith Construction Sdn Bhd to undertake construction work for a package in the Penang mega infrastructure project.

Vertice said the contract entails the construction work for a 5.7km by-pass from Bandar Baru Ayer Itam connecting to Lebuhraya Tun Dr Lim Chong Eu.

It added that the contract was awarded to Buildmarque Construction Sdn Bhd, a newly incorporated wholly-owned subsidiary of Vertice Construction Sdn Bhd, which in turn is fully owned by Vertice.

Vertice and Vizione are in the midst of arranging for the subscription of new shares in Buildmarque so that each party will eventually hold 50% equity interest in the new company, Vertice said in a filing with Bursa Malaysia.

The new contract, it said, is deemed to be a related party transaction in view of the interests of the major shareholders of Vertice, namely Datuk Zarul Ahmad Mohd Zulkifli and Vista Lestari Development Sdn Bhd (in which Zarul is a substantial shareholder).

Vista Lestari is a substantial shareholder of Zenith Construction Sdn Bhd, the holding company of Consortium Zenith.

Vertice said the construction period is 36 months from the commencement date or from the date of issuance of the notice to proceed.

The construction, it added, is expected to contribute positively to the future earnings of the group over the construction period.

Vertice’s shares closed down one sen or 1.07% at 92 sen, for a market capitalisation of RM171.96 million.