Vizione, Permaju Industries mutually terminate RM490m Sabah housing construction contract

• The contract was awarded to Vizione's wholly owned subsidiary, Bina Permai Sdn Bhd, by Permaju Industries' wholly owned unit, Permaju Property Sdn Bhd, in December 2023.

KUALA LUMPUR (June 11): Vizione Holdings Bhd (KL:VIZIONE) said a RM490 million contract for the construction of apartments in Sabah awarded to the group by Permaju Industries Bhd (KL:PERMAJU) has been terminated.

Both groups agreed on Wednesday (June 11) to mutually terminate the contract with immediate effect, said Vizione in a bourse filing.

The contract was awarded to Vizione's wholly owned subsidiary, Bina Permai Sdn Bhd, by Permaju Industries' wholly owned unit, Permaju Property Sdn Bhd, in December 2023.

Bina Permai was appointed as the turnkey contractor for the project involving the construction of three apartment blocks comprising 1,344 units in the Kota Kinabalu district.

Vizione said Permaju Property intends to resubmit the project's development plans to the authorities. In light of these uncertainties, the board reassessed the project’s commercial viability, leading to both parties agreeing to mutually and amicably terminate the letter of award.

The company clarified that no work had commenced, and no material costs were incurred.

According to previous filings, Permaju Property was led by directors Tang Boon Koon and Yee Yit Yang, while Bina Permai’s directors were Goon Mong Yee, Chong Yee Hing, and Datuk Chong Loong Men.

Meanwhile, the largest shareholder of Vizione is Symphony Life Bhd (KL:SYMLIFE), which acquired a 25.89% stake on Jan 27. The next largest shareholders are LKL International Bhd (KL:LKL) with a 9.05% stake, and Lazarus Capital Partners with 3.62%.

The largest shareholder of Permaju Industries is Vsolar Group Bhd (KL:VSOLAR) with a 16.35% stake, followed by Morgan Stanley Investment Bank Brokerage with 5.05%, and AE Multi Holdings Bhd (KL:AEM) with 4.08%.

At Wednesday’s closing, Vizione shares were down half a sen or 6.7% at seven sen, valuing the group at RM38.68 million.

Permaju Industries closed unchanged at one sen, giving it a market capitalisation of RM19.57 million.

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