Ekovest-Samling JV bags RM2.1 bil Pan Borneo Highway job

KUALA LUMPUR (Jan 6): Ekovest Bhd, with its joint venture (JV) partner Samling Resources Sdn Bhd, has bagged a RM2.11 billion contract for package WPC-02 of Phase 1 works of the Pan Borneo Highway in Sarawak.

In a filing with Bursa Malaysia today, Ekovest said its wholly-owned subsidiary Ekovest Construction Sdn Bhd has entered into a JV and shareholders agreement with Samling Resources for the proposed project.

The JV company, Samling-Ekovest JV Sdn Bhd, would be held on a 70:30 ratio by Samling Resources and Ekovest respectively. It will be incorporated as the vehicle for the parties to implement the project.

The initial subscription of the Samling-Ekovest shares, and future investment or shareholders’ advances would be funded via internal funds, and/or bank borrowings.

Samling Resources will sub-contract the project in its entirety on a back-to-back basis to Samling-Ekovest at the same price at which the project was awarded to Samling Resources.

Ekovest said the agreement was an opportunity for both parties to co-operate and leverage on each other’s strength and expertise.

It added that Ekovest Construction has experience, expertise and track record in providing technical expertise and procurement of construction materials and equipment to undertake the project.

On the other hand, Samling Resources is experienced in providing management in liaison with sub-contractors and the state government in Sabah and Sarawak.

“The JV agreement also represents an opportunity for Ekovest to participate in large scale construction projects in East Malaysia,” said Ekovest.

Ekovest shares closed one sen or 0.41% lower at RM2.40 today, for a market capitalisation of RM2.05 billion. — theedgemarkets.com