Combining the contract sum and the advance payment, the total consideration under the letter of award (LOA) would amount to RM172.66 million, it said in a filing with Bursa Malaysia today.
The proposed reclamation of land measures approximately 48.56 hectares and is located in Mukim Tanjung Kling, Daerah Melaka Tengah, ancillary to the operation of Tanjung Bruas port.
Pursuant to the agreement between OAMSB and Kumpulan Melaka Bhd, OAMSB is entitled to reclaim and sell the reclaimed land, which has been assigned for port operation usage and for maritime and petrochemical industry, it said.
"The award for the works shall be subject to TBSB’s satisfaction of technical due diligence findings and financial due diligence findings to be completed within 30 days from the receipt of all documents and information required, including proof of confirmed interest to purchase 16.9 hectares of reclaimed land for at least RM70 million or any other extended period as TBSB may decide.
"The rationale of the LOA is to provide Tanco and its subsidiaries with an alternate revenue source by tapping into the construction sector of the group given the general economic slowdown due to the COVID-19 pandemic," the group said.