Zecon and Kimlun say they secured a 48-month project's letter of award from Lebuhraya Borneo Utara Sdn Bhd. – The Malaysian Insider file pic, March 11, 2016. Zecon Bhd shares rose 1.21% in early trade today after its consortium with Kimlun Corporation Bhd clinched a RM1.46 billion contract to develop and upgrade a portion of the Pan Borneo Highway in Sarawak.
At 9.21am, Zecon was up 1 sen to 83.5 sen with 1.06 million shares done.
In separate statements to Bursa Malaysia yesterday, Zecon and Kimlun said they secured the four-year (48 month) project's letter of award from Lebuhraya Borneo Utara Sdn Bhd.
According to Zecon and Kimlun, both companies will set up a joint venture company (JVC) to develop the Serian roundabout-Pantu junction stretch of the Pan Borneo Highway.
Kimlun, which will own 30% in the JVC, said: "Upon the due incorporation of the JVC, the JVC will enter into a contract with the awarder on the project."
Zecon will own the remaining 70% in the JVC. Kimlun and Zecon said the contract was expected to "contribute positively" to their financials. – The Edge Markets, March 11, 2016.
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