Ageson appoints BASB as main contractor in mixed development project

KUALA LUMPUR: Plywood product maker Cymao Holdings Bhd’s wholly-owned subsidiary, Billion Apex Sdn Bhd (BASB) has received an offer from Ageson Bhd’s unit, Ageson Development Sdn Bhd to be the main contractor in a proposed mixed development project.

BASB will undertake main building and infrastructure works in the project located in Penang.

The parties today entered into a Memorandum of Understanding (MoU) in relation to the appointment of BASB, which marks Cymao’s maiden foray into the construction space.

In a filing with Bursa Malaysia today, the company said it would be seeking shareholders’ approval for the proposed diversification of the principal activities of the group to include construction, project management and related activities at an extraordinary general meeting on Feb 9.

Upon obtaining the shareholders’ approval, the company will enter into a definitive contract in relation to the appointment of BASB as the main contractor to undertake main construction works of the proposed development, with a contract value of RM120 million.

In a separate announcement, Ageson said the MoU demonstrates the board’s initiative in pursuing continued growth in its property development business.

It said the proposed project involved development of a building block comprising 79 units of service apartments, 138-room hotel and one-storey basement car park. - Bernama