KUALA LUMPUR (Jan 29): Varia Bhd, formerly known as Stella Holdings Bhd, has secured a RM94.86 million contract for the Klang River flood mitigation project in Shah Alam, Selangor.

In a filing on Monday (Jan 29), the construction and property developer said that its wholly-owned unit, Mewah Kota Sdn Bhd, has accepted a letter of award from Kator Construction Sdn Bhd, appointing it as a subcontractor for the project.

The project is scheduled to span 60 months, commencing on Feb 1, 2024, and concluding on Jan 31, 2029.

Varia said that the contract is expected to contribute positively to the group's earnings for the relevant financial periods within the contract duration, and it will not impact the share capital and shareholding structure of the group.

In a separate statement, Varia's managing director Datuk Benson Lau said that the project's award signifies a pivotal chapter in the group's journey towards sustainable development.

"This project not only showcases our commitment to technical excellence but also reflects our deep dedication to Environmental, Social, and Governance (ESG) principles. By addressing critical flood risks in Shah Alam, we're not just enhancing infrastructure; we're also safeguarding communities and nurturing environmental stewardship.

"This initiative is a clear manifestation of Varia's ethos to intertwine our growth objectives with the well-being of society and the planet," Lau said.

Shares in Varia settled unchanged at 93 sen on Monday, giving the group a market capitalisation of RM387.81 million.