KUALA LUMPUR (April 26): Vivocom Intl Holdings Bhd's subsidiary Vivocom Enterprise Sdn Bhd (VESB) has inked a heads of agreement (HoA) for a RM90 million contract to construct a mixed development on a 3.11ha land in Hulu Kinta, Perak.

In a filing with Bursa Malaysia, Vivocom said its unit entered into the HoA with Green Ventures Development Bhd, which will act as the developer of the mixed development with a gross development value of RM112 million on the 3.11ha land in Hulu Kinta.

The vacant land is owned by the Perak State Secretary Inc (Perbadanan Setiausaha Kerajaan Negeri Perak or SSI).

Subject to the terms and conditions of the HoA, Green Ventures will appoint VESB as the turnkey contractor to design and construct the structures and infrastructures and to carry out all associated works on the said development for an estimated RM90 million.

In turn, VESB is required to complete the construction of the whole development within two years after the launch.

Vivocom said the terms of the HoA are not final and is "subject to contract" until a final written agreement has been entered into.

The company said further details of the development project will be announced upon the execution of a formal final agreement between the parties.

The final agreement is to be signed by the parties by June 1 unless further extended by mutual agreement in writing, it said.

Vivocom said barring unforeseen circumstances, the proposed development is expected to contribute positively to the future earnings of Vivocom and further details of the financial effects arising from the proposed development will be announced upon the execution of the final agreement by the parties.

Vivocom shares, which were the third most actively traded stock on the local bourse today, closed 1.5 sen or 4.55% lower at 31.5 sen, with a market capitalisation of RM827.92 million.