KUALA LUMPUR (March 10): A consortium comprising Kimlun Corp Bhd and Zecon Bhd clinched a RM1.46 billion contract to development and upgrade a portion of the Pan Borneo Highway in Sarawak.

In separate statements to Bursa Malaysia today, Kimlun and Zecon said they secured the four-year (48 month) project's letter of award from Lebuhraya Borneo Utara Sdn Bhd.

According to Kimlun and Zecon, both companies will set up a joint venture company (JVC) to develop the Serian roundabout-Pantu junction stretch of the Pan Borneo Highway.

Kimlun, which will own 30% in the JVC, said: "Upon the due incorporation of the JVC, the JVC will enter into a contract with the awarder on the project."

Zecon will own the remaining 70% in the JVC. Kimlun and Zecon said the contract was expected to "contribute positively" to their financials.

At 12:30pm today, Kimlun shares rose six sen or 4% to settle at RM1.69, for a market value of RM507.9 million.

Zecon shares meanwhile, climbed six sen or 8% to 82 sen, for a market capitalisation of RM97.7 million.