KUALA LUMPUR: Ewein Bhd’s indirect subsidiary Ewein Zenith II Sdn Bhd has entered a joint venture agreement with Consortium Zenith Construction Sdn Bhd to set out the terms and conditions of a collaboration to develop a 4.34-acre freehold tract in Daerah Timur Laut in Pulau Pinang for RM159.75mil.
In a filing with Bursa Malaysia, Ewein said the parties have agreed that Consortium Zenith shall procure the Penang government to alienate the land to Ewein Zenith II to be the registered owners in order to undertake the proposed development.
The 4.34 acres is Plot 1 of a 50-acre tract along Gurney Drive to be alienated to Ewein Zenith Sdn Bhd by the Penang state government under the agreement signed on Jan 14,2016, as partial consideration for construction and land acquisition works awarded to Consortium Zenith.
“CZC and EZII (collectively referred to as parties) are now entering into the Agreement to set out the terms and conditions of the joint venture between CZC and EZII as EZ’s designated nominee to develop the said Land as a form of monetization mechanism for the financing of the Project, ” said the filing.
Ewein Zenith II is a wholly owned subsidiary of Ewein Zenith Sdn Bhd, which is a 89%-owned subsidiary of Ewein Land Sdn Bhd, in turn a wholly owned unit of Ewein.
Consortium Zenith has been awarded the contracts for the design and construction of a paired road to the existing north coastal road from Tanjung Bungah to Teluk Bahang, a by-pass from Bandar Baru Ayer Itam (Farlim) connecting to Lebuhraya Tun Dr Lim Chong Eu, a by-pass to connect the northern fringes of George Town (Persiaran Gurney) to the eastern corridor of the island (Lebuhraya Tun Dr Lim Chong Eu) circumventing the central business district of George Town and a third link (tunnel) from Persiaran Gurney to Bagan Ajam, Seberang Prai North District.
Separately, Ewein bought back 177,700 shares into its treasury at a price of between 57.5 sen and 58 sen. It currently has some 12.97 million shares in its treasury.
For its third quarter to Sept 30,2019, the company recorded net profit of RM7.6mil from RM12.28mil in the same quarter of the previous year.