Anzo, MCC Overseas form partnership
KUALA LUMPUR: Anzo Holdings Bhd, which reported its first quarterly net profit in seven years last week, has inked a consortium agreement with a Chinese group to undertake a RM1.21 billion construction contract in Selayang.
The contract is for a mixed development project called Paragon@KL Northgate.
In a filing to Bursa Malaysia yesterday, Anzo said the agreement was inked between its unit Harvest Court Construction Sdn Bhd and MCC Overseas (M) Sdn Bhd, a Malaysian subsidiary of China and Hong Kong-listed firm, Metallurgical Corp Co Ltd.
The consortium was formed after Harvest Court Construction last month received a letter of intent from KL Northgate Sdn Bhd, the master developer of Paragon@KL Northgate, to undertake the construction.
Harvest Court Construction and MCC Overseas will own a 50:50 stake in the consortium.
Anzo managing director Datuk Eddie Chai said the agreement showed that the company was committed to develop and complete Paragon@KL Northgate.
“The value and performance of Harvest Court and MCC combined will be greater than the sum of an individual company. We are confident that with MCC as our partner, the project will move smoothly,” he said.
Chai told NST Business that he was optimistic the company would have a few “good years” as it planned to start implementing the job in the fourth quarter of this year.
The timber manufacturer and construction firm, previously known as Harvest Court Industries Bhd, was making a loss for about seven years.
After Chai gained control of Anzo two years ago and diversified the company to venture into construction, it finally posted a RM1.25 million net profit in the fourth quarter ended March 31 this year, against a RM3.86 million net loss a year ago. Revenue for the quarter rose by sevenfold to RM7.58 million.
Anzo managed to reduce its full-year net loss by half to RM4.75 million, from RM10.96 million last year.
Meanwhile, Chai said the agreement was a milestone that would place the consortium in a strong position to negotiate and finalise the contract document and pricing with KL Northgate.
“We expect to complete negotiation process with KL Northgate by the third quarter of this year,” he said. Sharen Kaur
An artist’s impression of the Paragon@KL Northgate project.