Merge Energy bags RM26m Langat 2 work package

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KUALA LUMPUR (July 1): Merge Energy Bhd has accepted a contract from federal government agency Pengurusan Aset Air Bhd (PAAB) to undertake connection and installation works for the Langat 2 water treatment plant.

In its stock exchange filing today, Merge Energy said the contract, worth RM26 million, will be undertaken by its wholly-owned subsidiary Mewah Kota Sdn Bhd over a period of 12 months.

The group said Mewah Kota will be undertaking connection works to the existing system and mild steel pipe installations as part of the Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur.

It added that the contract, scheduled for completion on July 23, 2020, is expected to contribute positively to the group's earnings and net assets for the financial year ending March 31, 2020.

Shares in Merge Energy, down some 35% over the past two months, settled unchanged today at RM1.14 apiece, for a market capitalisation of RM76.38 million.