KUALA LUMPUR (Dec 29): Econpile Holdings Bhd, along with its joint venture (JV) partner China Communications Construction Co (M) Sdn Bhd (CCCC), has won an RM389.07 million contract to undertake foundation, substructures and other ancillary works for Package SUKE-CA3 of the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project.
In a filing with Bursa Malaysia yesterday, Econpile said its wholly-owned subsidiary Econpile (M) Sdn Bhd (EMSB) and CCCC received a letter of award dated last Thursday from Gabungan Strategik Sdn Bhd for the proposed project.
Based on the pre-bidding arrangement, the scope of work will be split between EMSB and CCCC in a 40:60 ratio.
“Under the contract, EMSB’s portion of work amounts to RM158.27 million out of the total contract sum of RM389.07 million awarded to CCCC and EMSB,” said Econpile.
The overall duration of the contract is 17 months.
“The contract is the main stream business of EMSB and is expected to contribute positively to the revenue and earnings of Econpile for the financial year ending June 30, 2017,” the group said.
Econpile’s share price closed three sen or 1.61% lower at RM1.83 yesterday, valuing it at RM979.05 million.
This article first appeared in The Edge Financial Daily, on Dec 29, 2016. Subscribe to The Edge Financial Daily here.