KUALA LUMPUR (March 9): MSM Malaysia Holdings Bhd said Encorp Bhd submitted the lowest bid for the proposed construction of MSM's sugar processing facility in Johor Bahru.

In a filing to Bursa Malaysia today, MSM said Encorp's wholly-owned subsidiary Encorp Construction & Infrastructure Sdn Bhd (ECISB)'s RM8.9 million offer was the lowest among the three bids received.

"Management invited three contractors to bid for the contract. Among the three bidders, ECISB offered the lowest price for the contract. Management called ECISB for a tender interview and negotiation session and closed the deal at RM8.9 million, which is lower than consultant's estimated contract value.

"Other than price, the appointment of ECISB was also evaluated based on the approved criteria set out in MSM's procurement policy and procedures, which includes technical (for eg product and services specifications) and non-technical specifications (for eg reputation and experience)," MSM said.

The contract is a related-party transaction. MSM said the Federal Land Development Authority (Felda) owned an indirect 17.2% stake in MSM.

Encorp is a 70.97%-owned subsidiary of Felda, according to MSM.

MSM shares have not been traded so far today. The stock was last traded on March 1 at RM4.71 for a market capitalisation of RM3.31 billion.