Anzo, MCC Over­seas form part­ner­ship

New Straits Times - - Business -

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.

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