KUALA LUMPUR (March 19): WCT Holdings Bhd’s wholly-owned subsidiary WCT Bhd has today accepted the letter of award (LoA) for an estimated RM1.2 billion contract to undertake superstructure works within parcel 2 of the Pavilion Damansara Heights mixed development near Pusat Bandar Damansara here.
In a statement to Bursa Malaysia today, WCT Holdings said the LoA is from Jendela Mayang Sdn Bhd (JMSB), which is linked to WCT Holdings executive chairman Tan Sri Lim Siew Choon.
"The scope of works under the contract shall encompass the execution and completion of 1 block of 32 storey office and hotel on a podium block comprising retail space, mezzanine floors and works to lower ground floor and basement car park, 2 blocks of residential tower, hard and soft landscape works and external works, including road and drainage, water reticulation, sewerage and a MRT link bridge," WCT Holdings said.
The contract is expected to commence in May 2020, and be completed within a 42-month period.
The group said the acceptance of the contract is considered a recurrent related party transaction between the WCT Group and JMSB, by virtue of Lim, the executive chairman and major shareholder of WCT Holdings, being a substantial shareholder and director of JMSB.
"As such, Lim has abstained from all deliberations and decisions relating to acceptance the contract,” WCT Holdings said.
At 2:50pm, WCT Holdings’ share price fell 5.5 sen or 18.33% to 24.5 sen for a market capitalisation of RM343 million. The stock saw some six million shares traded.