KUALA LUMPUR (Oct 23): Malakoff Corp Bhd (KL:MALAKOF) has awarded a RM34.39 million contract for transmission and interconnection works at its waste-to-energy (WTE) facility in Sungai Udang, Melaka, to a subsidiary of its major shareholder.

Its subsidiary, Sungai Udang WTE Sdn Bhd, entered into an agreement with MMC Engineering Sdn Bhd, which is a subsidiary of MMC Corp Bhd.

MMC Corp is Malakoff’s largest shareholder with a 38.45% stake.

The job covers the design, engineering, procurement, manufacturing, supply, construction, installation, testing and commissioning of 33kV transmission and interconnection works linking the facility to Tenaga Nasional Bhd’s (KL:TENAGA) Main Intake Substation Cheng in Melaka. It also includes an underground transmission cable system and associated facilities.

In a bourse filing on Friday, Malakoff said the works are scheduled for completion by May 19, 2029.

Malakoff said the transaction was undertaken in the ordinary course of business, on an arm's length basis and on normal commercial terms, and is not detrimental to the interests of the company’s minority shareholders.

Malakoff non-independent non-executive director Datuk Mohd Nazrul Izam Mansor is also a director and group chief executive officer of MMC Corp and is deemed interested in the transaction.

Shares of Malakoff closed unchanged at 75.5 sen on Friday, valuing the group at RM3.77 billion.