KUALA LUMPUR, June 9, 2021 – (ACN Newswire) – Main Market-listed Central Global Berhad’s (“CGB) construction arm, Proventus Bina Sdn Bhd (“PBSB”), has signed a Memorandum of Understanding (“MoU”) to explore a proposed joint venture (“JV”) with Multi Scopes Sdn Bhd (“MSSB”) for a sewage treatment plant in Selangor.
The scope of the proposed JV, in which PBSB would have a 70% effective stake and MSSB an effective 30% stake, would be the engineering, procurement, construction, commissioning, operation and handover of Employees Provident Fund’s wholly-owned subsidiary Kwasa Land Sdn Bhd’s sewage treatment plant in Petaling Jaya, Selangor.
Chief Business Officer of CGB and Director of PBSB Anson Lim said: “For this project, MSSB will manage the technical aspects of the project as they are the technical experts in sewage treatment plants while PBSB will handle the infrastructure part of the project.”
CGB executive chairman Dato’ Faisal Zelman said: “The proposed JV we are exploring through the MoU is another step in the plans we have to expand our construction business. We believe that the sewage treatment plant project would not only enable us to expand our portfolio of construction projects and orderbook but also provide us with consistent revenue for the next five years in Selangor.”
We continue to explore opportunities to grow both the manufacturing and construction businesses of the Group. We have since the beginning of the year won a project worth RM100.5 million for the upgrade of a water supply system in Lahad Datu, Sabah and have had our proposed private placement of 18 million new shares approved by Bursa Malaysia Securities Berhad. Proceeds from the private placement would be used to upgrade the manufacturing arm’s capacity and fund a property project in Penang.”
As of 31 March, 2021, the Group’s construction arm has an orderbook of RM130 million comprising of the Lahad Datu project and the Montage condominium project in Bayan Lepas, Penang.
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