Tuesday 18 Jun 2024
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KUALA LUMPUR (June 9): Central Global Bhd’s (CGB) construction arm Proventus Bina Sdn Bhd (PBSB) has inked a Memorandum of Understanding (MoU) with Multi Scopes Engineering Sdn Bhd to set up a joint venture to build an RM250 million sewage treatment plant in Petaling Jaya, Selangor.

In a filing with Bursa Malaysia, CGB said the scope of the proposed JV would be the engineering, procurement, construction, commissioning, operation and handover of the plant to Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund (EPF).

PBSB and Multi Scopes will have stakes of 70% and 30% respectively in the JV.

Chief business officer of CGB and director of PBSB Anson Lim said that Multi Scopes will manage the technical aspects for this project, as they are the technical experts in sewage treatment plants, while PBSB will handle the infrastructure aspects.

Meanwhile, CGB executive chairman Datuk Faisal Zelman added that the proposed JV through the MoU is another step in the group’s plans to expand its construction business.

“We believe the sewage treatment plant project would not only enable us to expand our portfolio of construction projects and orderbook but also provide us with consistent revenue for the next five years in Selangor.

“We have since the beginning of the year won a project worth RM100.5 million for the upgrade of a water supply in Lahad Datu, Sabah and have our proposed private placement of 18 million new shares approved by Bursa Malaysia Securities Bhd.

“Proceeds from the private placement would be used to upgrade the manufacturing arm’s capacity and fund a property project in Penang,” he added.

The group noted that as of March 31, its construction arm has an orderbook of RM130 million comprising the Lahad Datu project and the Montage condominium project in Bayan Lepas, Penang.

CGS’s share price closed 23 sen or 11.79% higher at RM2.18, giving the group a market capitalisation of RM198.38 million.

Edited ByLam Jian Wyn
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