Penang mega infrastructure job for Vertice-Vizione JV

KUALA LUMPUR (Sept 4): A joint venture (JV) 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 of a Penang mega infrastructure project. Vertice said the contract entails the construction work on a 5.7km bypass connecting Bandar Baru Ayer Itam 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 fully owned by Vertice. Vertice and Vizione are arranging for the subscription of new shares in Buildmarque, so that each party will eventually hold a 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, 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.

This article first appeared in The Edge Financial Daily, on Sept 4, 2018.

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