KUALA LUMPUR (April 1): EVD Bhd has secured two contracts totaling RM19.5 million for mechanical and engineering (M&E) works, comprising the construction of a wastepaper warehouse and associated facilities, as well as the development of a power generation facility in Kuala Langat, Selangor.

According to EVD's bourse filing, the letter of award was granted to its wholly-owned subsidiary EVD Engineering Sdn Bhd by Sing Foong Niap Engineering Sdn Bhd.

The first project entails M&E works for a wastepaper warehouse, including its coal warehouse, office and distribution room, owned by Best Eternity Recycle Technology Sdn Bhd, amounting to RM3.52 million, with a duration of three months from the commencement date.

Meanwhile, the second project involves M&E works for the power generation facility of a recycle pulp and packaging paper plant owned by BERT, with a contract sum of RM15.98 million and a duration of 9.5 months from the commencement date.

These contracts are deemed recurrent related party transactions of a revenue or trading nature, given that Datuk Wong Sak Kuan, a substantial shareholder of EVD with a 6.23% stake, is also the director and largest shareholder of Sing Foong Niap Engineering, holding a 99.17% stake.

In light of this, the group stated it will seek a mandate from its shareholders to enter into such transactions at the forthcoming extraordinary general meeting to be convened.

EVD noted that both contracts will not have any effect on the share capital or substantial shareholders’ shareholdings of EVD, and they are expected to contribute positively towards the earnings and net assets of the group for the financial years ending June 30, 2024, and 2025.

Shares in EVD closed unchanged at 14 sen on Monday, valuing the group at RM59.64 million.