Muhibbah gets nod for Kertih park job

PETALING JAYA: Muhibbah Engineering (M) Bhd has received the green light from the East Coast Economic Region Development Council to construct and complete the main infrastructure works worth RM168mil for Kertih Biopolymer Park in Kemaman, Terengganu.

Muhibbah said in a filing with the stock exchange yesterday that it received a letter of acceptance from the council to perform the job.

The council is a statutory body set up by the federal government to spearhead socio-economic development of the East Coast Economic Region.

Muhibbah said the works are slated for completion within 24 months from the date of site possession, likely to be next month.

Apart from major earthworks, road and drainage works, Mu hibb ah said it will also carry out utility services including sewerage treatment plant, network pump station, elevated water tank, sub-station building, among other associated works.

The group said the contract is expected to contribute positively to Muhibbah’s earnings and net assets for the current and future financial years.

“The board, after considering all the relevant factors, is of the opinion that the contract award is in the best interest of the group,” Muhibbah said, adding that it will not have any impact on the company’s share capital and/or shareholding structure.

None of the directors and/or major shareholders and persons connected to the directors and/or major shareholders have any direct or indirect interest in the contract.

Muhibbah shares closed down one sen or 0.35% at RM2.83 yesterday, with 686,400 shares traded. At this price, the company is worth RM1.36bil.