ANZO EXPECTED TO RETURN TO BLACK
Company has submitted bids for projects worth between RM150m and RM200m, say sources
TIMBER manufacturer and construction firm Anzo Holdings Bhd is set to return to the black in fiscal year 2017, after winning a slew of contracts in the last two years.
Sources close to Anzo said the company is building up its construction order book and it may have several government projects to announce in the next few months.
According to the sources, Anzo had submitted bids for building and infrastructure projects worth between RM150 million and RM200 million.
“Anzo is upping the ante. It wants to raise its profile as a nation builder and is targeting government jobs and contracts from developers.
“The shareholders of Anzo have a long-term vision for the company. They are planning for Anzo to be a strong player in the construction sector,” said a source.
Last month Anzo received a letter of intent (LoI) from KL Northgate Sdn Bhd for a construction contract worth up to RM1.21 billion for Phase 1 of Paragon@KL Northgate, a mixed-development project in Selayang, Kuala Lumpur.
Anzo expects to start work in the fourth quarter of this year, in a joint venture with MCC Oversea (M) Sdn Bhd, which is a unit of China and Hong Kong-listed firm, Metallurgical Corp Co Ltd.
Sources said it is highly likely that Anzo will also be getting the LoI for Phase 2 from KL Northgate for the development.
“This is a related party transaction so it is quite possible for Anzo to get the additional job. The major shareholder of Anzo, Datuk Chai Woon Chet owns 24.5 per cent of KL Northgate and he is looking at expanding both the companies,” said the source.
In March this year Anzo’s unit, Harvest Court Construction Sdn Bhd received a LoI for a contract worth up to RM109.3 million to undertake Phase 2 of the Porto De Melaka Hotel and Resort development.
The LoI was awarded by Tinta Anggun Engineering Sdn Bhd. The same company had given Harvest Court a RM153 million contract in October 2015 for Phase 1 of the hotel and resort development project, to construct 120 units of service suites and 24 spa villas.
Meanwhile, Anzo said in a Bursa filing that it had resolved to fix the issue price of the rights shares at RM0.20 per rights share and the exercise price of the warrants C at RM0.20 per warrant C.
It said the board took into consideration the funding requirements of the group.
“The board had fixed the exercise price after taking into consideration the TERP (theoretical ex-rights price) of RM0.2345 per Anzo shares, calculated based on the five day VWAP (volume weighted average price) of Anzo shares up to and including May 5 this year, being the last trading day before the price-fixing date of the rights shares and warrants C of RM0.3122 yesterday.”
Anzo shares ended 1.5 sen, or 5.17 per cent, down to 27.5 sen yesterday from Friday’s closing price of 29 sen.
Anzo’s major shareholder Datuk Chai Woon Chet