KUALA LUMPUR (Oct 21): Anzo Holdings Bhd said it has to make a financial commitment of RM20 million for the Porto De Melaka project, which was recently awarded to its wholly-owned subsidiary, Harvest Court Construction Sdn Bhd (HCCSB).

In a filing with the bourse today, it said it intends to raise the funds required via a rights issue.

The announcement was made in reply to a query by Bursa Malaysia, following the company’s announcement relating to the RM153 million contract win on Oct 19.

The exchange's queries included the method or manner of award, and the scope of works to be undertaken by HCCSB.

Anzo said HCCSB was invited by Tinta Anggun Engineering Sdn Bhd (TAESB) to participate in the tender for the first phase of the project, with the contract awarded via subsequent negotiation.

Meanwhile, the scope of works entail the cover design, approval, build and delivery for Phase 1 of the project, which includes piling and pile caps for the entire project, all building, architectural and mechanical and electrical works.

The works will be for 120 units of service suites, 24 units of SPA villas, a 670-bay basement carpark, 135 motorcycle parking bays, and ancillary services and associated external facilities and services, including roadways, sewerage, water reticulation, river embankment and river front broadway and landscape.

Anzo added that any non-completion of the contract works beyond the date of completion, will be met with liquidated ascertained damages (LAD) of RM10,000 per day.

It said the development order was obtained on Sept 10, with the detailed design components currently being finalised with an international hotel brand.

Anzo fell 1 sen or 4.88% to 19.5 sen today, bringing its market capitalisation to RM54.76 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)