KUALA LUMPUR: Halex Holdings Bhd has been awarded a two-year contract valued at RM368mil to supply and package white rice under the Food Bank Project launched by the Federal Government.
The company said in its filing with Bursa Malaysia on Thursday that its trading subsidiary Halex (M) Sdn Bhd accepted the offer from Koperasi Majlis Belia Felda Malaysia Bhd (KMBFM) to procure and package rice for the project, known as Project Gedung Makanan Negara (GMN).
The contract is to supply 80,000 tonnes of pre-packaged white rice worth RM184mil annually for two years, with a one-year extension option subject to negotiation and mutual agreement.
Halex noted that the contract value was only an estimate and KMBFM did not guarantee that the full amount would be purchased.
“The actual amount purchased will vary depending on the purchase order given from time-to-time,” it added.
It said the contract was an expansion of its rice trading business following Halex’s recent proposed acquisition of a 70% equity interest in SL Aktif Sdn Bhd, which also received an offer from KMBFM to procure and package rice under the GMN Project as announced on Nov 11.
KMBFM was incorporated on Jan 27, 2012 to carry out contracting activities and participate in awards from government and private sector. These include management advisory services, agricultural activities and retail businesses.
Halex expects the contract to contribute positively to its results for the financial year ending Dec 31, 2016.
Limited time offer:
Just RM5 per month.
