KUALA LUMPUR (Oct 13): Nestcon Bhd's subsidiary has secured a RM129.6 million contract for site clearance, earthwork and ancillary works in Mukah, Sarawak.
Nestcon's wholly owned unit, Nestcon Infra Sdn Bhd, which is principally involved in construction works, has been appointed as the contractor. It received a letter of award (LOA) for the project on Thursday (Oct 13) from Sino Natural Resources Malaysia Sdn Bhd.
"The LOA shall be in force for an initial term of 24 months effective from Oct 13, 2022 to Oct 12, 2024 (Initial Term), with an option to extend for an additional period of 24 months upon written notice not later than 30 days prior to the expiration of the Initial Term," said Nestcon in a filing.
The project is expected to contribute positively to the group's net assets per share, earnings per share and gearing for the financial year ending Dec 31, 2022.
On Thursday, Nestcon's share price closed 2.25% or one sen lower at 43.5 sen, giving it a market capitalisation of RM285.72 million.