KUALA LUMPUR (June 19): MGB Bhd’s wholly-owned subsidiary MGB Construction & Engineering Sdn Bhd has accepted a letter of award (LOA) from Arqhitectnia on behalf of Seloka Sinaran Sdn Bhd (SSSB) for a proposed development project in Sepang valued at RM156.83 million.

According to a filing on Monday (June 19), the project is to be carried out in three parcels, with the first expected to commence on September 1, 2023 and completed on November 30, 2024, whilst the second and third parcels have yet to be provided a timeline.

The first parcel would consist of the construction of a residential area, a community garden and two TNB electrical substations while the second comprises only a residential area and two TNB electrical substations.

Meanwhile, the third parcel would consist of only residential houses.

MGB’s current outstanding order book stands at approximately RM1.85 billion with the addition of this proposed contract.

The group added that the contract will have no effect on the issued share capital but is expected to contribute positively to its earnings and net assets per share over the duration of the contract.

SSSB is a subsidiary of LBS Bina Group Bhd, which is a major shareholder of MGB.

Managing director of MGB Datuk Wira Lim Hock Guan is also the major shareholder and managing director of LBS Bina.

As the trading counter closed, shares of MGB remained unchanged at 70 sen, giving the group a market capitalisation of RM414.2 million.