PRG in deal with S’pore firm to undertake property, construction projects

KUALA LUMPUR: PRG Holdings Bhd (PRG) has signed a memorandum of understanding (MoU) with Mirach Energy Ltd to set out the preliminary understanding of a proposed joint-venture for property and construction projects in Malaysia and elsewhere.

In a filing to Bursa Malaysia yesterday, PRG said for a start, the company and Mirach, a Singapore-based firm, had proposed to work together to undertake the main contractor work in relation to the development of an affordable housing project in Malaysia.

Mirach is an investment holding with subsidiaries involved in upstream oil and gas, with interest in energy investment holdings, exploration and production, technical oilfield services and solutions, as well as related consultancy work.

Mirach has proposed to diversify its business into the property and construction business.

PRG said both parties would incorporate a joint-venture company in Malaysia, of which the shareholding ratio would be agreed upon between Mirach and PRG, and that the joint-venture company would be a subsidiary of Mirach.

The Mirach joint-venture company will be appointed as the main contractor of the first project and Mirach will contribute funds of an amount to be agreed upon to fund the initial working capital to undertake the construction of the first project.

PRG said the proposed jointventure was in line with the group’s business model to work with strategic partners in property development and construction projects that fit into its strategies and business capabilities.

The proposed joint-venture would also provide a good opportunity to diversify the group’s revenue stream, said PRG. Bernama