PETALING JAYA: Kerjaya Prospek Group Bhd, through a 50% joint venture partnership with Gamuda Engineering Sdn Bhd, a wholly-owned subsidiary of Gamuda Bhd, has received a RM202.6mil project from Eastern & Oriental Bhd (E&O) to build a bridge connecting Jalan Gurney and the Seri Tanjung Pinang (Phase 2) Development (STP2) in the Penang Island.
In a filing with Bursa Malaysia yesterday, Kerjaya Prospek said the JV won the contract from Tanjung Pinang Development Sdn Bhd, an indirect subsidiary of E&O.
Notably, the contract award is regarded as a recurrent related party transaction as Datuk Tee Eng Ho, who is a co-founder of Kerjaya Prospek, is a director and major shareholder of E&O. Tee, through his vehicle Amazing Parade Sdn Bhd, is in the midst of a mandatory takeover offer of E&O.
The award is for the execution and completion of infrastructure works on Gurney Marine Bridge, a 55.47 metre-wide main road from Gurney Marine Bridge to Gurney roundabout, upgrading of Gurney roundabout and all other associated civil engineering works for the STP2.
It said the infrastructure works of the contract are expected to commence on May 4 and will take 30 months to complete from the commencement date.
“We are very delighted to have secured the sixth infrastructure contract since 2016. In fact, this is the second bridge project after the completion of the marine bridge crossing the sea linking Jalan Seri Tanjung Pinang on the Penang island with the STP2 Island, ” Tee said in a statement.
In a separate filing, the mandatory takeover offer by Amazing Parade for shares in E&O has been deemed “not fair and not reasonable” by the independent adviser BDO Capital Consultants Sdn Bhd.
BDO CC said the offer price of 60 sen per E&O share represents a “significant discount” of RM1.52 or 71.7% against the estimated fair value of E&O share of RM2.12, which is deemed as not fair. In addition, BDO CC said that the offerors plan to maintain E&O’s listing status, and they do not intend to acquire remaining offer shares.