KUALA LUMPUR (Sept 1): Vivocom International Holdings Bhd's subsidiary has been appointed as the turnkey contractor for a residential condominium project with a gross development value of RM600 million in Hulu Kinta, Perak.

In a filing with Bursa Malaysia, Vivocom's unit Vivocom Enterprise Sdn Bhd (VESB) entered into a heads of agreement with the developer of the project, Dazamega Ventures Sdn Bhd, today.

According to Companies Commission of Malaysia's data, Dazamega was established on March 15, 2016 with an issued paid-up capital of RM3.

Dazamega's shareholders and directors include Azlan Abdul Rahman, Azizah Din and Norhasyikin Zartamin.

Meanwhile, Vivocom (formerly Instacom Group Bhd) said VESB is tasked to design and construct the structures featuring six blocks of 22-storey residential condos, infrastructures and all associated works on the development within 48 months after the launch.

"The cost and outlay by VESB as the turnkey contractor to implement the project have not been fixed and shall be determined once the terms and conditions of a final agreement [are] mutually agreed upon by the parties.

"Once determined, VESB will finance the cost and outlay by way of the internally generated funds and/or bank borrowings, as and when required," Vivocom said.

According to the agreement, the parties are not obligated to proceed with the proposed development unless the terms and conditions of a final agreement is agreed upon and executed by Sept 30, 2016, unless further extended by mutual agreement between the parties.

Barring unforeseen circumstances, the proposed development is expected to contribute positively to the future earnings of Vivocom.

At closing, its share price fell half sen or 1.79% to 27.5 sen, valuing it at RM711.5 million.