KUALA LUMPUR (June 27): MGB Bhd has received a letter of intent from Kemudi Ehsan Sdn Bhd, a subsidiary of LBS Bina Group Bhd, to undertake piling, pile cap and building works including internal infrastructure works valued at RM175.2 million, for the proposed Phase 3A and 3B development projects in Bandar Alam Perdana, Ijok, Selangor.

LBS Bina is a major shareholder of MGB.

In a filing with Bursa Malaysia today, MGB said its wholly-owned subsidiary MITC Engineering Sdn Bhd has received the letter of intent from Kemudi Ehsan for the proposed job, which is subject to the finalisation of contract documents, terms and conditions and final contract pricing.

The Phase 3A job, worth RM70.6 million, entails the construction of 362 units of 2-storey terrace houses, a surau, a multipurpose hall, a 2-storey library and kindergarten, a Tenaga Nasional Bhd (TNB) substation, a main switching station, a refuse chamber and a guardhouse.

Works on Phase 3B, valued at RM104.6 million, encompass the construction of 494 units of 2-storey terrace houses, 28 units of 2-storey semi-detached houses, two TNB substations and other works related to housing development under a gated community scheme.

"The project is expected to increase and enhance the group's existing order book. It will have no effect on the issued share capital of the group, but it is expected to contribute positively to the earnings and net assets per share," said MGB.

MGB shares closed down 2.5 sen or 2.6% at 93.5 sen today, for a market capitalisation of RM464.51 million. LBS Bina shares also ended the day 0.5 sen or 0.56% lower at 89 sen, valuing it at RM1.37 billion.