KUALA LUMPUR: KJTS Group Bhd
’s Thailand subsidiary, KJTN Engineering Company Ltd, has secured four 20-year agreements to provide operation and maintenance (O&M) services and chilled water supply to four hotels in Thailand, with total fixed fees of about RM47.83 million.
KJTS said KJTN Engineering entered into the agreements with four wholly-owned subsidiaries of Central Plaza Hotel Public Company Ltd (Centel), which will also involve retrofit works at the hotels. The agreements cover Centara Reserve Samui, Centara Hotel Hat Yai, Centara Grand Beach Resort Phuket and Centara Karon Resort Phuket.
"The retrofit works under each agreement are expected to commence in September 2026 and be completed by February 2027. The O&M services and chilled water supply will be effective for 20 years from March 2027 to February 2047,” KJTS said in a stock exchange filing.
Under the agreements, Centara Reserve Samui carries total fixed fees of about RM13.46 million over the 20 years, while Centara Hotel Hat Yai and Centara Grand Beach Resort Phuket carry about RM12.86 million each. The total fixed fees for Centara Karon Resort Phuket amounted to about RM8.65 million.
KJTS said in addition to the fixed fees, KJTN Engineering will charge the respective hotel operators a monthly variable fee based on the amount of chilled water supplied.
The group said the agreements will not affect the share capital and substantial shareholders’ shareholdings of KJTS and its subsidiaries. "The agreements are expected to contribute positively to the earnings and net assets of KJTS Group until the expiration of the agreements,” it added.
On the risks involved, KJTS said the group does not foresee any material risks beyond the normal operational risks associated with the agreements, which are within its ordinary course of business. KJTS also said none of its directors, major shareholders or persons connected with them have any direct or indirect interest in the agreements. "The board, after having considered all aspects of the agreement, is of the opinion that the agreements are in the best interest of the company,” it added. - Bernama
