KUALA LUMPUR (Oct 6): OCK Group Bhd (KL:OCK) is partnering JTOWER Inc and Sun Group to invest and deploy telecommunications infrastructure on Phu Quoc island in Vietnam.
Under a tripartite in-principle agreement, OCK will be responsible for all built-to-suit infrastructure and fibre networks while Japan’s JTOWER will handle in-building solutions. Sun Group, one of the largest real estate developers in Vietnam, is the project owner and developer.
“The project list spans convention and media facilities, hotels, residential developments and airport-related works,” OCK Group said in a statement.
The agreement was signed by OCK’s Vietnamese subsidiary VNC-55 Infrastructure Investment Company Ltd with Southern Star Telecommunication Equipment Joint Stock Company, a subsidiary of JTOWER, and Sun Group unit Sun Phu Quoc.
The project will involve facilities supporting the Asia-Pacific Economic Cooperation summit next year. The collaboration combines outdoor mobile infrastructure, fibre connectivity and in-building coverage to support the requirements for the event and the connectivity needs beyond.
OCK currently has a portfolio of more than 5,500 telecommunications towers and has a presence in markets including Vietnam, Myanmar, Indonesia and Laos.
For OCK, the partnership creates an opportunity to expand its infrastructure investment in Vietnam and deepen its relationship with Sun Group across multiple developments.
In the initial phase, the project requires an investment of about RM2 million, with deployment expected to be completed and the infrastructure operational within six to 12 months once the project begins.
The investment period will run for 20 years. During that period, OCK will have exclusive rights to operate the built-to-suit infrastructure and fibre networks, while Southern Star will have exclusive rights to operate the in-building infrastructure within the agreed project scope.
OCK’s share price was unchanged at Tuesday noon break at 47.5 sen, giving the group a market capitalisation of RM516 million. The stock has risen 25% since the start of this year.