Com­pany has sub­mit­ted bids for projects worth be­tween RM150m and RM200m, say sources

New Straits Times - - Business - SHAREN KAUR KUALA LUMPUR sharen@me­di­

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

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