ZELAN BAGS RM96.99 MILLION SUB-CONTRACT WORKS

ZELAN BAGS RM96.99 MILLION SUB-CONTRACT WORKS
The Malaysian Insider
21 October 2015

Zelan Bhd has bagged sub-contract works worth RM96.99 million from MMC-Sumitomo Consortium, which is constructing the Langat centralised sewage treatment plant and sewer pipe network connection for the Langat river basin catchment. In a filing with Bursa Malaysia today, Zelan said its wholly-owned subsidiary, Zelan Construction Sdn Bhd will undertake the sub-contract works with Icop Construction (M) Sdn Bhd on a joint venture basis through an entity to be incorporated.

Both companies yesterday accepted the letter of acceptance for the sub-contract works from MMC-Sumitomo Consortium.

The sub-contract works involve the construction and completion of 16.6km of pipe jacking in various sizes and 164 shafts for jacking and receiving pit in various sizes and depths for the sewerage conveyance system for Zone 7A and 7B of the Langat project.

The date for completion for the whole of the sub-contract works is 26 months from the date for possession of the site to be notified by the contractor, said Zelan.

Zelan is a 39.25%-owned unit of MMC Corp Bhd and therefore, the sub-contract is considered a related party transaction.

As at 2.06pm, Zelan shares were traded unchanged at 26.5 sen with 1.35 million shares done. Its market capitalisation stood at RM223.9 million. – The Edge Markets, October 21, 2015.