KUALA LUMPUR (May 5): Kerjaya Prospek Group Bhd said its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd today accepted a letter of award from Eastern & Oriental Bhd's (E&O) indirect subsidiary Persada Mentari Sdn Bhd for a RM28.398 million contract involving construction work for a proposed serviced apartment project at Penang's Seri Tanjung Pinang reclaimed land.
In a statement to Bursa Malaysia today, Kerjaya Prospek Group said the contract covers, among others, earthwork and basement construction for the proposed two blocks of 35-storey serviced apartments.
"The contract shall commence on May 18, 2021 and be completed within 12 months from the commencement date," Kerjaya Prospek Group said.
Kerjaya Prospek Group claimed that the acceptance of the contract is undertaken "on an arm's-length basis, based on normal commercial terms which are not more favourable than those generally available to the public".
According to Kerjaya Prospek Group, the contract is regarded as a related-party transaction.
Kerjaya Prospek Group said its executive chairman Datuk Tee Eng Ho is also a director of E&O and an indirect major shareholder of E&O.
"Datin Toh Siew Chuon and Mr Tee Eng Seng, both executive directors of the company (Kerjaya Prospek Group) are indirect major shareholders of E&O.
"Amazing Parade Sdn Bhd, a major shareholder of the company (Kerjaya Prospek Group) is also a major shareholder of E&O," Kerjaya Prospek Group said.
At Bursa's 12.30pm break today, Kerjaya Prospek Group's share price was down one sen or 0.74% to RM1.35, which gives the company a market capitalisation of about RM1.67 billion.
Kerjaya Prospek Group has 1.24 billion issued shares, according to its latest annual report.