KUALA LUMPUR (Oct 31): Mesiniaga Bhd has been awarded an RM261.56 million contract to build new infrastructure for the Accountant General's Department of Malaysia (AGD) under the Ministry of Finance (MoF).

In an exchange filing today, Mesiniaga said the contract awarded to it by the MoF will commence tomorrow for completion by end-April 2025.

Under the contract, Mesiniaga will design, supply, commission, and maintain the infrastructure hardware and software and carry out the installation, migration testing and commissioning of the integrated financial and accounting management system of the Federal Government (iGFMAS) and the support system at AGD's new infrastructure.

The supply and implementation period is 10 months, while the hardware warranty period is for 60 months starting from May 2020 to April 2025.

“The proposed transaction will have a positive effect on the company’s net assets for the financial year ending Dec 31, 2019 (FY19).

“It is also expected to contribute positively to the company’s earnings over the period of the contract,” said Mesiniaga.

Mesiniaga’s management added that while the contract will have a positive effect on its earnings per share, it is not likely to have an effect on the company’s dividend policy, gearing, share capital, and substantial shareholders’ shareholdings in FY19.

Shares in Mesiniaga closed five sen or 4.3% up today at its near two-month high of RM1.22, bringing it a market capitalisation of RM73.69 million.