business
Zecon up 1.21% after RM1.46 billion highway deal
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.
Please note that you must sign up with disqus.com before commenting. And, please refrain from comments of a racist, sexist, personal, vulgar or derogatory nature and note that comments can be edited, rewritten for clarity or to avoid questionable issues. As comments are moderated, they may not appear immediately or even on the same day you posted them. We also reserve the right to delete off-topic comments