KUALA LUMPUR (Aug 19): Construction firm Kerjaya Prospek Group Bhd (KL:KERJAYA) said on Monday that it had secured a RM275.29 million contract for the construction and completion of a building in Bandar Tanjung Pinang, Pulau Pinang.

The contract, deemed as a current related party transaction, was awarded to Kerjaya Prospek’s wholly owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, from Persada Mentari Sdn Bhd, the group showed in a bourse filing. The project is scheduled for completion within 38 months.

Kerjaya Prospek said the scope of the contract includes the construction of a 50-storey building, which will comprise 261 units of service apartments, along with associated car park and facilities.

This contract is deemed as a recurrent related party transaction, as Datuk Seri Tee Eng Ho, the non-independent non-executive chairman and major shareholder of Kerjaya Prospek, also serves as the executive chairman and major shareholder of Eastern & Oriental Bhd (KL:E&O). 

Tee holds a 67.64% stake in Kerjaya Prospek, and a 51.12% stake in E&O. His brother, Datuk Tee Eng Seng, is an executive director and major shareholder of both companies. 

Kerjaya Prospek anticipates that the project will positively contribute to the group’s earnings and net assets per share for the financial year ending Dec 31, 2025 (FY2025) to FY2028.

As of the midday trading session on Monday, shares in Kerjaya Prospek were up two sen or 1.04% at RM1.95, giving the company a market capitalisation of RM2.46 billion. Meanwhile, shares in E&O rose by half a sen or 0.55% to 91.5 sen, valuing the company at RM1.9 billion.