PETALING JAYA: Sunway Bhd has secured a contract worth RM169.86mil from Iskandar Investment Bhd to design and build the Coastal Highway Southern Link (CHSL) in Johor.
According to a filing with Bursa Malaysia, the conglomerate said its wholly-owned subsidiary Sunway Construction Sdn Bhd (SunCon) has signed a letter of acceptance with SJIC Bina, a unit of Iskandar Investment for the highway project.
Sunway is expected to commence work on Jan 7 next year, with a contract period of two years.
The CHSL is expected to provide direct access to Sunway Iskandar. It will shorten travelling time to the Singapore Second Link Bridge (pic).
The proposed project was expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2015 onwards, Sunway said.
“The project is expected benefit Sunway Iskandar, Khazanah Nasional Bhd, Iskandar Investment, Medini developments among others,” it added.
Sunway plans to re-list its construction unit Sunway Construction Group Bhd (SCG) in the second quarter of next year.
The proposal entails the injection of SunCon to SCG, via a proposed distribution by way of dividend-in-specie of at least 13.3% of SCG shares to existing Sunway shareholders.
Sunway share price rose one sen or 0.3% to close at RM3.30 with 1.25 million shares traded yesterday, bringing it to a market capitalisation of RM5.66bil.