KUALA LUMPUR (Oct 26): PRG Holdings Bhd (pictured) today signed a collaborative agreement with Jiangsu Provincial Construction (M) Sdn Bhd (JPC) to venture into highway, bridge, port, housing development, as well as project investment and financing projects in Malaysia and abroad.
PRG said the agreement formalises the commitments made by both parties in an earlier agreement inked in July, and regulates their rights and obligations as shareholders in the joint venture entity named Premier JPC Sdn Bhd.
PRG will hold a 51% stake in Premier JPC, while the remaining 49% will be held by JPC.
The collaboration will include construction projects potentially worth RM5 billion to be developed by PRG and the subsidiaries of Syarikat Perumahan Negara Bhd (SPNB), PRG said in a statement.
JPC is a unit of China's Jiangsu Provincial Construction Group Co Ltd (JPC Group), one of the pioneers in the construction industry of China, directly under the Construction Bureau of Jiangsu Province.
JPC Group has 4,500 employees and works on businesses across over 30 countries, with an annual output value of nearly 30 billion renminbi (RM19 billion), as well as total assets of 15 billion renminbi (RM10 billion).
“This is another cross-border collaboration by a Malaysian company with its counterpart from China, which is in line with the government’s aspiration for more participation in the China Belt and Road Initiative,” said PRG group managing director Datuk Lua Choon Hann.
“We value the skill and knowledge transfer from JPC’s extensive experience in more than 10,000 construction projects. Moving forward, PRG shall provide its knowledge of the domestic market to make this cooperation a success,” Lua said.
Based on the agreement, PRG will assist Premier JPC in securing contracts in Malaysia, including affordable housing projects under the finance ministry.
Lua said PRG, which listed its manufacturing arm Furniweb Holdings Ltd on the Hong Kong Stock Exchange on Oct 16, aims to expand its other core businesses in the construction and property industries in Malaysia.
PRG’s share price was up 0.5 sen at RM1 at 3.30pm, bringing its market capitalisation to RM301.91 million. — theedgemarkets.com