KUALA LUMPUR (July 15): Industrialised Building System (IBS) precast manufacturer MGB Bhd (formerly known as ML Global Bhd) has secured an RM215 million contract from its major shareholder LBS Bina Group Bhd's subsidiary to deliver the piling and building works for a housing development project in Kuala Selangor.

This brings the group’s current outstanding order book to RM1.57 billion, according to the company’s filing with Bursa Malaysia.  

The housing project consists of 901 units of double-storey terrace house and 250 units of double-storey townhouses.

MGB said the construction and completion of the contract will take 30 months and is scheduled to commence in Oct 2020.

MGB said the contract was awarded to its wholly-owned subsidiary MGB Construction & Engineering Sdn Bhd (formerly known as MITC Engineering Sdn Bhd) from TA Square, on behalf of Kemudi Ehsan Sdn Bhd. Kemudi is a subsidiary of a property developer, LBS Bina.

LBS Bina is the largest shareholder of MGB with a 59.85% stake.

Tan Sri Lim Hock San is the group managing director of both MGB and LBS Bina. While Lim Kim Hoe, son of Hock San, is an executive director & deputy chief executive officer of MGB.  

MGB shares price dropped 0.5 sen or 1.06% at 46.5sen, bringing it a market capitalisation of RM233.27 million. LBS Bina share price also ended 0.5 sen or 1.39% lower at 35.5sen, valuing it at RM537.98 million.