Vivocom Intl Holdings Bhd has secured a RM75 million contract for a mixed development project in Terengganu.
The Sarawak-based construction firm told Bursa Malaysia yesterday its subsidiary, Vivocom Enterprise Sdn Bhd, had received the contract from Udaran Sdn Bhd for the construction of two blocks of serviced apartments and nine shoplots for Lembaga Tabung Amanah Warisan Negeri Terengganu in Kuala Terengganu.
The project shall commence upon site possession and is expected to be completed within 36 months.
“The risks associated with the project are mainly operational risk and risk of delay in completion of the project. Notwithstanding this, the management of Vivocom will strive to ensure full compliance with the operational procedures in the execution of the requirements of the project,” it said.
The deal is anticipated to contribute positively to earnings and net assets of Vivocom for the duration of the contract.
Vivocom shares ended flat yesterday at 14 sen, with a market capitalisation of RM444.5 million. — TMR