Sub-Contract Agreement with China Geo Engineering Corporation

BackSep 27, 2019
Type Announcement
Subject OTHERS
Description

Salcon Berhad ("Salcon" or "the Company")

- Sub-Contract Agreement with China Geo Engineering Corporation

Salcon is pleased to announce that Salcon Engineering Berhad, a wholly-owned subsidiary of the Company, had on 26 September 2019 entered a Sub-Contract Agreement with China Geo Engineering Corporation (‘Sub-Contract Agreement’) for the following project:

Project

Date of Commencement

Duration

Contract Sum

Mechanical and Electrical portions of the Works to be executed under the Plant & Design Build Contract for Civil and M&E Works, Valachchenai Water Supply Project,

Contract No : RSC(E)/D&B/VALACHCHENAI/2017/01

 

(hereinafter referred as “the Project”)

To be determined by China Geo Engineering Corporation at a later date

36 months from date of commencement

USD7.55 million (equivalent to RM31.66 million*) and SLR833.70 million (equivalent to RM19.19 million#) totaling equivalent to approximately RM50.85 million

(including provisional sum, custom duty and VAT)

The Project is a construction contract and has no option for renewal.

The Project is expected to contribute positively towards the earnings and net assets of Salcon Group for the financial year endings 31 December 2020, 31 December 2021 and 31 December 2022.

Salcon does not foresee any exceptional risks other than execution risks associated with the Project.

The Project will not have any effect on the share capital and substantial shareholders’ shareholding of the Company.

None of the directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Project.

This announcement is dated 27 September 2019.

Notes:

*   Based on the exchange rate of USD1:RM4.19 on 26 September 2019 as set out in the Bank Negara’s website, subject to rounding.

#   Based on the exchange rate of SLR1.00 : RM0.023 on 26 September 2019 as set out in XE Currency Data API, subject to rounding. 



Announcement Info

Company Name SALCON BERHAD
Stock Name SALCON
Date Announced 27 Sep 2019
Category General Announcement for PLC
Reference Number GA1-27092019-00026