By FARA AISYAH
Widad Group Bhd, formerly Ideal Jacobs (M) Corp Bhd, has secured a RM190.5 million contract to build a 200-bed multidisciplinary private hospital in Kinrara, Selangor.
In an exchange filing yesterday, the company noted its wholly owned subsidiary, Widad Builders Sdn Bhd (WBSB), was contracted by Wardah Properties Sdn Bhd as the main contractor for the project.
Wardah is a wholly owned subsidiary of Widad Business Group Sdn Bhd, which in turn is a substantial shareholder of Widad.
The scope of works includes designing, constructing and completing the development of the hospital on a 3.43-acre (1.39ha) site. The development shall be based on the “design and built” concept.
Widad stated the project will be funded with internal funds and external borrowings.
Construction works will commence for 36 months, starting Nov 3, 2019.
Should WBSB fail to complete the project by the agreed time period or any extended time granted, the amount of RM5,000 per day will be charged as liquidated and ascertained damages for the period during which the project remains incomplete.
Widad shares closed unchanged at 27 sen yesterday, giving the company a market capitalisation of RM650.48 million.
WBSB recently entered into a consortium agreement with Tranz-I Resources Sdn Bhd to pursue rail and rail-related business prospects in Malaysia.
WBSB will own an 80% stake in the joint venture, while Tranz-I the remaining 20%.