MGB unit secures RM44.7 mil MEP and finishes contract for Saudi 75-villa development

PETALING JAYA (July 22): MGB Bhd’s indirect wholly owned Saudi Arabian subsidiary has secured a SAR41.02 million (about RM44.67 million) contract from ROSHN Group Company for mechanical, electrical and plumbing (MEP) systems and finishes works for 75 villa units under the Marafy Al Arous Development Project.

In a Bursa Malaysia filing on Tuesday (July 21), MGB said its subsidiary, MGB International For Industry, accepted the letter of award from ROSHN Group Company for the works at Phase 1A Zone B — Blocks 104, 105 and 106 of the development.

The contract’s commencement date will be determined by the notice to proceed issued by the employer, with the works scheduled for completion within 300 calendar days, or approximately 10 months, from the commencement date.

The award relates to a separate works scope from MGB’s previously announced contract for the construction of 75 villas at the same development.

MGB said the contract is expected to contribute positively to the group’s future earnings and strengthen its order book.

The group added that the project represents a step in expanding its construction presence in Saudi Arabia, in line with its long-term regional growth strategy.

The contract will not have any effect on MGB’s issued share capital, but is expected to contribute positively to the group’s revenue and net assets per share over the duration of the contract.

MGB said none of its directors, major shareholders, chief executive or persons connected with them has any direct or indirect interest in the contract.

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