Vivocom unit bags turnkey project worth RM600 mil from Dazamega

KUALA LUMPUR (Sept 2): Vivocom International Holdings Bhd’s subsidiary has been appointed as the turnkey contractor for a residential condominium project with a gross development value of RM600 million in Hulu Kinta, Perak.

In a bourse filing, Vivocom said Vivocom Enterprise Sdn Bhd (VESB) had inked a heads of agreement with the developer of the project, Dazamega Ventures Sdn Bhd, yesterday.

According to data from the Companies Commission of Malaysia, Dazamega was established in March 15, 2016, with an issued paid-up capital of RM3. Its shareholders and directors include Azlan Abdul Rahman, Azizah Din and Norhasyikin Zartamin.

Vivocom (formerly Instacom Group Bhd) said VESB is tasked with designing and constructing the structures featuring six blocks of 22-storey residential condominiums, infrastructure and all associated works on the development within 48 months after the launch.

“The cost and outlay by VESB as the turnkey contractor to implement the project have not been fixed and shall be determined once the terms and conditions of a final agreement [are] mutually agreed upon by the parties.

“Once determined, VESB will finance the cost and outlay by way of internally generated funds
and/or bank borrowings, as and when required,” Vivocom said.

The parties are not obligated to proceed with the proposed development unless the terms and conditions of a final agreement are agreed upon and executed by Sept 30, 2016, unless further extended by mutual agreement between the parties.

Vivocom expects the proposed development to contribute positively to its future earnings. Its share price fell 0.5 sen or 1.79% to close at 27.5 sen yesterday, valuing it at RM711.5 million.

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This article first appeared in The Edge Financial Daily, on Sept 2, 2016. Subscribe to The Edge Financial Daily here.