PETALING JAYA: Widad Group Bhd’s wholly owned subsidiary, Widad Builders Sdn Bhd (WBSB), has accepted a letter of award for a RM190.5mil contract from Wardah Properties Sdn Bhd.
This will see WBSB being the main contractor for the proposed construction of a 200-bed multi-disciplinary private hospital in Selangor.
Wardah is a wholly owned subsidiary of Widad Business Group Sdn Bhd, which, in turn, is a substantial shareholder and parent company of Widad.
WBSB is principally involved in construction and integrated facilities management activities.
In a filing with Bursa Malaysia, Widad said the shareholders’ mandate for the recurrent related-party transaction was obtained at an EGM on Nov 28, 2018.
The contract period, which consists of design, submission and construction, is 42 months, beginning May 2, 2019 to Nov 2, 2022.
“Should WBSB fail to complete the project by the agreed time period or any extended time granted, the amount of RM5,000 per day as liquidated and ascertained damages for the period during which the project remains incomplete shall be imposed,” Widad told Bursa Malaysia.
Widad said the project is expected to be funded via internally generated funds and external borrowings.
The board of directors is of the opinion that the project is in the best interest of Widad.