Saturday 22 Jun 2024
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KUALA LUMPUR (March 14): T7 Global Bhd has entered into a new memorandum of understanding (MoU) with Terengganu state-linked corporation Eastern Pacific Industrial Corp Bhd (EPIC) and CMC Engineering Sdn Bhd, a wholly-owned bumiputera company, to form a consortium to undertake the construction of the RM60 billion East Coast Rail Line (ECRL) project's Terengganu parcel.

However, China State Construction Engineering (M) Sdn Bhd (CSCEM), a subsidiary of China State Construction Engineering Corp Ltd, is excluded from the new MoU.

In the previous MoU signed on Oct 20 last year, CSCEM's role was as the technology partner in the strategic partnership to ensure the smooth implementation of the ECRL project.

T7 did not give the reason why the parties opt for a new MoU, except to say that it was "due to the development of the project".

In a filing with Bursa Malaysia today, T7 said it has terminated the previous MoU and will enter into a new MoU to implement the project.

In a separate filing, T7 said the new MoU will provide an opportunity for EPIC, CMC and T7 to establish collaboration based on the respective parties' expertise and strengths. The MoU will be valid for 12 months.

T7 said the collaboration also aims at exploring the business opportunities in the ECRL project, to promote itself as the Terengganu state's initiatives and contributions towards the well-being of Terengganu's socio-economic development. Additionally, it aims to secure the interest of Terengganu state government and that of the federal government's commitment for participation and implementation of the project such as maximising the participation by local businesses and workforce in the project.

EPIC, CMC and T7 expect to enter into a formal long form business collaboration agreement, detailing the relations and full obligations of the three parties with the secured contracts obtained from the federal government.

"Should the collaboration materialise, it is expected to contribute positively to the future earnings of the company," said T7.

T7 shares closed unchanged at 59 sen today, with 2.38 million shares done, giving it a market capitalisation of RM247.48 million.

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