KUALA LUMPUR (Jan 24): Kerjaya Prospek Group Bhd has secured a contract to execute and complete infrastructure works for the proposed Seri Tanjung Pinang (Phase 2A) development (STP2) in Penang Island, worth a total of RM41.45 million.

The contract, awarded to its wholly-owned unit Kerjaya Prospek (M) Sdn Bhd by an indirect subsidiary of Eastern & Oriental Bhd (E&O), is for the execution and completion of roadworks, water reticulation system, street lighting works and all associated works for the proposed STP2 in Timur Laut.

According to Kerjaya Prospek, the construction works will take 16 months to complete, from its scheduled commencement on Feb 5, 2020. The contract is expected to provide an additional stream of revenue for the group over the next two years.

“We are very delighted to have secured the third contract for 2020 in such quick succession, which brings our total contract wins for 2020 to approximately RM1 billion and our total outstanding order book to approximately RM3.9 billion,” said Kerjaya Prospek executive chairman Datuk Tee Eng Ho.

“With that in mind, Kerjaya will continue to work hard and execute our ongoing projects to deliver sustainable earnings and create value for our shareholders,” Tee added.

The contract is regarded as recurrent related party transaction (RPPT), pursuant to Bursa Malaysia Securities’ listing requirements. Tee is a non-independent non-executive director and substantial shareholder of E&O, together with Kerjaya Prospek executive director Tee Eng Seng, who is also a substantial shareholder of E&O.

Shares of Kerjaya Prospek closed two sen or 1.47% up at RM1.38 apiece yesterday, bringing a market capitalisation of RM1.7 billion.

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