The engineering and construction firm told Bursa Malaysia that Icop Construction (M) Sdn Bhd would have a 20% participating interest in the JV.
MMC-Sumitomo Consortium had awarded ZCSB and Icop the subcontract in October last year. This subcontract represented a related party transaction, as MMC Corp Bhd owns 39.25% direct interest in Zelan.
In a letter dated Dec 16, 2015, ZCSB and Icop were notified by MMC Pembetungan Langat Sdn Bhd that it had taken over the project from MMC-Sumitomo Consortium.
The subcontract works involve the construction and completion of about 16.6km of pipe jacking in various sizes and 164 shafts for jacking and receiving pit in various sizes and depths.
The works are to be completed within 26 months from the date for site possession, to be notified by MMC Pembetungan.
Zelan said the proposed JV was expected to contribute positively to Zelan’s consolidated earnings and improve its net assets for this financial year ending Dec 31, 2016 and the subsequent financial years over the duration of the sub-contract works.
Zelan shares rose 1 sen to close at 25 sen on Wednesday.