ML Global bags Kuantan property construction project

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KUALA LUMPUR (Nov 7): ML Global Bhd has secured a commercial real estate construction contract worth RM35.9 million from property developer LBS Bina Group Bhd.

LBS owns 20.45% in ML Global.

In a filing with Bursa Malaysia today, ML Global said it would undertake building and infrastructure works for LBS' shop office project in Kuantan, Pahang.

ML Global said its wholly-owned subsidiary Vintage Tiles Industries Sdn Bhd had accepted the letter of award from LBS.

According to ML Global, the project comprises 121 units of shop office. The project, known as Sinaran Mahkota, is located within Bandar Indera Mahkota, Kuantan.

"The contract is not expected to have any material effects on the share capital and shareholding structure of the company.

"However, it is expected to have positive contribution to the earnings per share, net assets per share and gearing of the ML Global group," ML Global said.

In a separate filing with Bursa Malaysia, LBS said the duration of the contract was 18 months. The contract starts on Nov 7 this year.

"The award was granted to Vintage Tiles Industries in view of its lowest price offered, and its experience and resources to undertake the project," LBS said.

At 12.30pm, ML Global shares fell three sen or 6.52% to settle at 43 sen, giving it market capitalization of RM41.23 million.

LBS dipped one sen or 0.6% to RM1.67, translating into a market value of RM888 million.