KUALA LUMPUR (March 26): Vivocom Intl Holdings Bhd has teamed up with Shanghai Civil Engineering Group Co Ltd (CREC Shanghai) to explore opportunities in property development, mixed development, infrastructure, water treatment plant and other development projects.
In a filing with Bursa Malaysia today, Vivocom said its subsidiary Vivocom Enterprise Sdn Bhd (VESB) has entered into a Heads of Agreement (HoA) with CREC Shanghai for the purpose.
"The parties are desirous to work together and collaborate for the purpose of procuring such development and construction projects and is desirous in entering into this agreement to record the general arrangement to define and regulate the relationship between the parties in relation to the business collaboration," it added.
Vivocom said VESB will act as CREC Shanghai’s sole and exclusive project management consultant for all projects within Malaysia.
Once a project is determined, VESB will finance the cost and outlay by way of the internal funds and/or bank borrowings, it added.
"Project cost and financial benefits derived from the proposed collaboration cannot be ascertained at this point of time. Barring unforeseen circumstances, the proposed collaboration is expected to contribute positively to the future earnings of Vivocom," it said.
Vivocom shares closed unchanged at 7 sen today, with 1.19 million shares traded, bringing it a market capitalisation of RM237.91 million.