KUALA LUMPUR: MGB Bhd’s indirect wholly owned subsidiary, MGB International For Industry, has secured a contract worth RM34.76 million to undertake the construction of 75 villa units in Saudi Arabia.
MGB said in a filing with Bursa Malaysia that MGB International had accepted a letter of award on Wednesday from ROSHN Group Company, a Saudi Arabia-based real estate developer owned by the country’s sovereign wealth fund, the Public Investment Fund, for the project.
“The total contract value of the project is 32.98 million Saudi riyal (RM34.76 million),” it said.
MGB said the commencement date will be determined upon the issuance of a notice to proceed by the employer, while the construction period is set at 242 calendar days, or about eight months, from the commencement date.
“The contract is expected to contribute positively to the future earnings and strengthen the order book of the group. The project represents a strategic step in expanding the group’s construction presence in Saudi Arabia, in line with long-term regional growth strategies,” it said.
MGB also said the contract will have no effect on the issued share capital of the company but is expected to contribute positively to the revenue and net assets per share of the company and the group over the duration of the contract.
It added that none of its directors, major shareholders or chief executive, or persons connected to them, has any direct or indirect interest in the contract. – BERNAMA
