KUALA LUMPUR (Jan 4): PRG Holdings Bhd said today that a new Hong Kong-based partner is joining its joint venture (JV) with China's Jiangsu Provincial Construction Group Co Ltd (JPC) to undertake infrastructure, property and construction activities in Malaysia and abroad.

The new partner is Mingfa Group (Global) Investments Holdings Ltd, which has shown interest to participate in the collaboration, PRG said in a Bursa Malaysia announcement today.

Founded in 1994, Mingfa was incorporated in Hong Kong as an investment holding company, primarily engaged in property businesses. The company operates through four segments, which are property development, hotel operation, property investment and management, and property construction.

The trio inked a new collaboration agreement (CA) to formalise their tie-up today. This new CA will supersede the one originally inked between PRG and JPC in October last year. The trio will conduct their partnership via the JV vehicle, Premier JPC Sdn Bhd (JVco).

"The strategic collaboration with Mingfa represents a major leap forward in conjunction with PRG's intention to leverage the knowhow and resources to extract maximum value from the derivable synergy flow. We are pleased to have Mingfa onboard, which will take the projects to be undertaken by Premier JPC to greater heights in term of quality performance," PRG managing director Datuk Lua Choon Hann said in a press statement.

He added that the new collaboration is in line with PRG's strategy of strengthening its presence in the property development and construction market through strategic acquisitions or JVs with strategic partners.

Premier JPC, originally set up on a 51:49 JV basis between PRG and JPC last year, will be involved in the potential affordable housing projects worth RM5 billion with Syarikat Perumahan Negara Bhd. Under the new CA, the shareholder percentage in the JVco is now 33% PRG, 34% JPC, and 33% Mingfa.

The JV parties intend for Premier JPC to venture into highway, bridge, port, project investment and financing and housing development projects in Malaysia.

PRG shares were untraded today. The counter last closed at 95 sen yesterday, giving it a market capitalisation of RM287.4 million. The stock has climbed some 28% over the past 12 months.