KUALA LUMPUR (Dec 29): Sunway Bhd has bagged a RM169.86 million contract from Iskandar Investment Bhd (IIB) to build the Coastal Highway Southern Link in Johor.
In a filing with Bursa Malaysia, Sunway said its indirect wholly-owned subsidiary Sunway Construction Sdn Bhd today signed a letter of acceptance issued by SJIC Bina Sdn Bhd – a wholly-owned unit of IIB – for the proposed project.
The proposed project is expected to commence on Jan 7, with a contract period of 24 months.
"The proposed project is expected to benefit Sunway Iskandar, a major township project by Sunway, Khazanah Nasional Bhd and IIB, and other developments in Medini Iskandar Malaysia and its surroundings including those by UEM Sunrise Bhd and Mulpha International Bhd, due to the improved connectivity to the Coastal Highway and shortened traveling time to the Second Link to Singapore to about five minutes," said Sunway.
“The proposed project is subject to normal construction risk of materials price fluctuation. However, with the past experience and expertise of Sunway Construction Sdn Bhd (SunCon) in construction projects, this risk could be mitigated," it added.
The proposed project is expected to contribute positively to the earnings of the Sunway group from the financial year ending Dec 31, 2015.
Sunway shares closed 1 sen higher at RM3.30 today, bringing a market capitalisation of RM5.66 billion.
SunCon, a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which in turn is a wholly-owned unit of Sunway, is seeking to list on the Main Market of Bursa Malaysia in the second quarter of next year. It was reported that Sunway’s entire construction arm will be injected into a new company known as Sunway Construction Group Bhd as part of the listing plans.