KUALA LUMPUR: Kerjaya Prospek Group Bhd’s wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd has signed a framework agreement with Samsung C&T (KL) Sdn Bhd, a wholly-owned subsidiary of Samsung C&T Corporation (Engineering & Construction Group) (Samsung).
In a joint statement, it said under the agreement, both parties shall jointly pursue various types of business opportunities for construction contracts exceeding RM300mil.
The agreement will remain in force for a period of five years and will automatically be renewed on a rolling basis after the expiry for subsequent periods of one year until the agreement is terminated by either party.
In an effort to align long-term interest, Samsung will subscribe to Kerjaya’s proposed private placement of approximately 25.2 million new shares (2.04% of Kerjaya’s existing issued share capital) at RM1.60 per share, via their wholly-owned subsidiary Vista Contracting & Investment Global Pte Ltd.
Kerjaya will raise approximately RM40.4mil, through this private placement, which shall be utilised for working capital for ongoing projects and expenses in relation to the private placement.
Kerjaya chief executive officer and executive director Tee Eng Tiong said: “This partnership marks a significant milestone for Kerjaya as it indicates that our strong capabilities in delivering unique and high-quality developments have been recognised by a global multinational conglomerate like Samsung.”
“We are excited about this partnership as we will gain access to Samsung’s construction expertise, further sharpening our competitiveness to enable us to stay at the forefront of the construction sector. We strongly believe this partnership will create compelling and sustainable value propositions for the group and its shareholders,” he added.
Meanwhile, Samsung C&T executive vice president Hyuk Shin said Kerjaya has proven its expertise and quality in the construction industry.
“With the best of both companies, we believe it will create a collaborative and synergistic partnership in Malaysia. The collaboration will also help to further propel our growth in the construction market.”