KUALA LUMPUR (Nov 14): Construction company GDB Holdings Bhd has bagged a RM20.67 million contract to be the main contractor to undertake piling and substructure works for two blocks of serviced apartments.

In a filing with Bursa Malaysia today, GDB said its newly acquired 70%-owned subsidiary, GDB Geotechnics Sdn Bhd (formerly known as Eco Geotechnics Sdn Bhd), had accepted the letter of award and supplementary agreement from SNA Consult Sdn Bhd, a wholly-owned subsidiary of Hua Yang Bhd, on behalf of Bison Holdings Sdn Bhd.

The proposed development involves two blocks of serviced apartments, comprising a 36-storey Tower 1 and a 37-storey Tower 2, with a total of 902 units, and includes a common facilities podium and a six-storey car park in Puchong.

The contract will commence on Nov 18, 2019 for a duration of 21 months and is scheduled to be completed by Aug 18, 2021.

"Barring any unforeseen circumstances, the contract is expected to contribute positively towards the future earnings of GDB for the duration of the contract and will not have any effect on the share capital and substantial shareholders' shareholdings of GDB," GDB said.

It added that it intends to finance the contract via internally generated funds.

At the noon break, shares of GDB were up 1.5 sen or 3.57% at 43.5 sen for a market capitalisation of RM271.88 million. It made its debut on the ACE Market of Bursa Malaysia a year and a half ago with an initial public offering price of 35 sen.

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