KUALA LUMPUR (Feb 11): Knusford Bhd has entered into a joint-venture agreement with Shanghai Greenland Construction Co Ltd to bid for major building jobs and infrastructure projects in Malaysia and the region.
In a statement today, Knusford (fundamental:1.25; valuation: 1.8 ) said its wholly-owned subsidiary Kota Express Sdn Bhd and Greenland Construction’s Malaysian entity – Greenland Malaysia Urban Development Sdn Bhd (GMUD) will form a new special purpose vehicle (SPV) to spearhead the strategic alliance.
According to Knusford, GMUD and Kota Express will hold 55:45 equity respectively in the SPV.
The SPV is expected to be fully operational by this year and is likely to bid for and participate in several major real estate development projects already announced by the Greenland Group, such as real estate developments in Danga Bay and Tebrau Bay in Johor Bahru, Johor, the statement read.
Aside from this, the SPV will also vie for other new and emerging construction and infrastructure jobs in the public and private sectors in Malaysia and the region.
Knusford’s major shareholder is Aman Setegap Sdn Bhd with a 30.11% stake. Johor Sultan DYMM Sultan Ibrahim Ibni Almarhum Sultan Iskandar and Tan Sri Lim Kang Hoo are deemed interested in the 30.11% stake through their holdings in Aman Setegap.
Knusford's counter closed unchanged today at RM1.53, giving it a market capitalisation of RM million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)