KUALA LUMPUR (Dec 5): Cahya Mata Sarawak Bhd (CMS) said today that it has obtained a six-month extension valued at about RM87.7 million from the Sarawak government to upkeep state roads.

The original contract was for 15 years, which will expire on Dec 31 this year, CMS said in a filing with Bursa Malaysia today. With the extension, the contract will now end on June 30 next year.

The contract was first secured via its subsidiary CMS Roads Sdn Bhd in April 2003, at an estimated RM88.8 million a year, based on rates calculated at that time.

CMS said its unit CMS Roads received a letter yesterday from the state government, informing them of the extension, which CMS Roads accepted.

Based on the letter, the extension will be based on the same terms and conditions as the original contract, and will facilitate negotiations and finalisation of the revised terms and conditions for the renewal of the agreement for the long-term management and maintenance of state roads.

The extension is expected to contribute positively to CMS’ earnings during the tenure of the contract, the filing read.

CMS shares dipped 11 sen or 2.83% to close at RM3.78 today, for a market capitalisation of RM4.06 billion.