Ekovest gains 1.25% after JV bags RM2.11b highway package

KUALA LUMPUR (Jan 9): Shares of Ekovest Bhd gained 1.25% this morning after the company, together with its joint-venture (JV) partner Samling Resources Sdn Bhd, bagged a RM2.11 billion contract for package WPC-02 of Phase 1 works of the Pan Borneo Highway in Sarawak.

At 9.11am, Ekovest gained 3 sen to RM2.43 with 805,500 shares traded.

In a bourse filing, 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, and be incorporated as the vehicle for the parties to implement the project.

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. — theedgemarkets.com