This article first appeared in The Edge Financial Daily on May 3, 2017

KUALA LUMPUR: Anzo Holdings Bhd said its wholly-owned subsidiary Harvest Court Construction Sdn Bhd (HCCSB) has been appointed as the main contractor for phase 2 of the Porto De Melaka Hotel and Resort development in Melaka.

The contract — awarded by Tinta Anggun Engineering Sdn Bhd — is worth RM109.3 million for a contract period of 36 months, it said in a filing with Bursa Malaysia.

The contract entails main building works, architecture and mechanical and electrical works for the basement, associated infrastructure works, interior fit-outs and furnishing, and installation of equipment.

It said the financial commitment required by HCCSB is estimated to be about RM12 million, which will be funded via the excess funds from the ongoing rights issue exercise, bank borrowings, internal funding, or a combination of those.

“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 Anzo group.

“The board of directors of Anzo is of the opinion that the contract is in the ordinary course of business and in the best interest of the company,” it said.

Anzo’s share price closed 0.5 sen or 1.61% lower at 30.5 sen yesterday, giving it a market capitalisation of RM93.19 million.