Exsim Hospitality unit gets RM7.35m related-party contract

PETALING JAYA (Sept 1): Exsim Hospitality Bhd said its wholly owned subsidiary Exsim Concepto Sdn Bhd (ECSB) has accepted a RM7.35 million letter of award from Lim Legacy Properties Sdn Bhd (LLPSB) for the main building works of a two-storey temporary sales gallery in Kuala Lumpur.

In a Bursa Malaysia filing on Tuesday (Sept 1), the group said the works involve a proposed show unit at Lot 43943, Jalan Klang Lama, Mukim Petaling.

The contract is scheduled to commence on Sept 7 and be completed on March 6, 2027, giving it a construction period of six months. The works carry a 27-month defects liability period from the date of the certificate of practical completion.

EHB said the contract works constitute a recurrent related party transaction (RRPT) of a revenue or trading nature under Bursa Malaysia Securities Bhd's Main Market Listing Requirements.

Lim Aik Hoe, Lim Aik Kiat and Lim Aik Fu, who are major shareholders of EHB, collectively hold a 69.541% indirect interest in the company through Exsim Hospitality Holdings Sdn Bhd.

Lim Aik Hoe and Lim Aik Kiat are also directors of LLPSB. The three brothers collectively hold a 100% indirect interest in LLPSB through Exsim Development Sdn Bhd.

EHB said shareholders had renewed the mandate for the company to enter into such RRPTs at its annual general meeting on Nov 27, 2025.

The group separately said the acceptance of the letter of award is not subject to the approval of its shareholders or any regulatory authorities.

Save for the disclosed interests, none of EHB's other directors, major shareholders or persons connected with them has any direct or indirect interest in the contract works.

ECSB is principally involved in specialised fit-out services for hospitality property assets, general contracting and centralised procurement, while LLPSB is principally involved in property development.

EHB expects the contract to contribute positively to its net assets per share, earnings per share and gearing over the duration of the works.

The group said it does not foresee any exceptional risks from the contract beyond normal operational risks associated with the works.

Its board said the contract works are within EHB's ordinary course of business and that the acceptance of the letter of award is in the company's best interests.

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