PRG to diversify into construction

PRG to diversify into construction
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KUALA LUMPUR (Nov 9): PRG Holdings Bhd, formerly Furniweb Industrial Products Bhd, is proposing to diversify its core business to include construction as it anticipates that the group's construction business may contribute to 25% or more of its net profit.

This follows a project worth RM50.15 million that it had undertaken on July 31, 2014 to build five blocks of apartments, one-storey gymnasium and swimming pool, and one-storey common facilities building in Ipoh, Perak, which PRG said is progressing ahead of its original planned schedule.

"Barring any unforeseen circumstances, the board is of the view that the project and new construction projects in future will contribute positively to the finance performance of the group," it said in a filing with Bursa Malaysia today.

PRG said it will seek the approval of its shareholders for the proposal at the forthcoming extraordinary general meeting to be convened.

"Subject to the approval of shareholders for the proposed diversification, the group may undertake suitable new construction projects in order to optimise employment of its construction resources," said PRG.

The construction division of the group currently operates under Premier Construction Sdn Bhd, which is a registered Grade G7 contractor with Construction Industry Development Board of Malaysia.

PRG said the proposed diversification complements the group's existing business in property development and enables the group to undertake complementary activities in property development, construction and project management services.

PRG had on April 14 gained its shareholders' approval to diversify its principal activities to include property development.

PRG shares closed 0.5 sen or 0.7% lower at 70.5 sen today, giving it a market capitalisation of RM102.9 million.

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