By DASHVEENJIT KAUR

Kumpulan Perangsang Selangor Bhd (KPS) has raised its shareholding in KPS-HCM Sdn Bhd to 51% from 30%, making it the majority stakeholder in the infrastructure works and road maintenance company.

HCM Engineering Sdn Bhd will hold the remaining stake. KPS-HCM has secured a seven-year contract to undertake the maintenance of state roads awarded by the

Selangor state government. The firm is involved in road and highway construction, as well as road maintenance and building construction.

KPS raised it stake in KPS-HCM via the subscription of an additional 1.72 million shares for RM1.72 million.

KPS-HCM is a partnership between KPS and HCM Engineering, which is a subsidiary of Protasco Bhd.

KPS CEO Ahmad Fariz Hassan said, “Holding a majority stake in KPS-HCM enables us to steer its future growth direction and consolidate its future results into the group’s top and bottom lines, compared to only equity-accounting its share of profits as an associate.”

In a statement yesterday, he added that the move is in line with KPS’ strategic business plan to hold a majority stake in companies under its portfolio and harness their potential for future expansion.

KPS-HCM has also been awarded a RM174.4 million contract by Central Spectrum (M) Sdn Bhd, a company controlled by state-owned Kumpulan Darul Ehsan Bhd, for infrastructure works in Pulau Indah.

The works are to be completed within 18 months commencing July 5, 2017, to Jan 5, 2019, and are expected to contribute positively to the results of KPS Group for the financial years ending Dec 31, 2017, to 2019.

“This newly-secured contract spurs us to continue tendering for similar projects in order to sustain the performance of our infrastructure and utility segment going forward.

“We envisage KPS-HCM would go beyond its existing scope of road construction, maintenance, refurbishment and rehabilitation, to do general civil engineering works, building construction and maintenance for both public and private sectors,” Ahmad Fariz said.