Vizione bags RM750 mil related-party contract for apartment construction job

• The integrated construction engineering outfit will undertake the main contract works for Phase 2 and 3 of the development under the contract it received from property developer Fields Of Forest Sdn Bhd (FOFSB).

KUALA LUMPUR (May 30): Vizione Holdings Bhd (KL:VIZIONE), which is valued at RM73.72 million, has secured a RM750 million contract from a company partially owned by its directors for construction works on a mixed development in Gombak, Selangor.

The integrated construction engineering outfit will undertake the main contract works for Phase 2 and 3 of the development under the contract it received from property developer Fields Of Forest Sdn Bhd (FOFSB).

Phase 2 comprises various blocks of serviced apartments, shoplots and a parking complex, while Phase 3 comprises serviced apartments and shoplots.

The work is expected to be completed within three years after the group receives the architect’s instruction, said Vizione.

“The contract is expected to contribute positively to the future earnings of the company,” it added.

Vizione noted that work for the contract will require it to enter into recurrent related-party transactions which have yet to be mandated.

Its managing director Datuk Ng Aun Hooi and executive director Bee Jian Ming are indirect shareholders of FOFSB.

Based on back-of-the-envelope calculations, Ng controls a 50.64% effective stake in FOFSB, while Bee controls 5.28%. Another 40% stake in FOFSB is held by Lau Beng Wei, while a 4.08% stake is controlled by Istilah Sari (M) Sdn Bhd. 

Shares in Vizione ended unchanged at four sen, giving it a market capitalisation of RM73.72 million.

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