- Salcon Loh & Loh JV Sdn Bhd has won a sub-contract worth RM470mil for works related to the Langat 2 centralised sewage plant.

- The JV company had received the letter of acceptance from MMC Corp Bhd on 15 Dec.

- The works entail the detailed design, procurement, construction, commissioning and transfer of technologies, operation and maintenance of the sewage plant.

- The project will take 70 months and commence on 22 Dec 2014 with completion by 19 Oct 2020.

- Both Salcon Bhd and Loh & Loh Constructions Sdn Bhd have a 50% stake each in the JV company.

- The sub-contract follows the award of the RM1.5bil job to the MMC-Sumitomo consortium in Oct for the Langat sewage plant and sewer pipe network connection to Langat river basin catchment.

- The contract was awarded by the Ministry of Energy, Green Technology and Water then.

- Earlier in April, Salcon-MMC-AZRB JV had clinched the RM993.8mil job for the development of Langat 2 water treatment plant (WTP) and water reticulation system phase 1.

- Yesterday, JAKS Resources Bhd (non-rated) also announced that its wholly-owned subsidiary, JAKS Sdn Bhd, had secured Package 5 of the Langat 2 WTP project for the supply and installation of piles worth RM55.3mil. The contract is for 24 months and is expecte4d to be completed by Jan 2017.

- Meanwhile, Puncak Niaga Holdings Bhd will hold the EGM on 7 Jan 2015 to seek shareholders’ approval for the proposed disposal of its 100% equity stake and convertible redeemable preference shares (CRPS) in Puncak Niaga (M) Sdn Bhd, and 70% stake and RCULS in SYABAS for a total cash consideration of RM1.55bil.

- The disposal is expected to be completed in 1Q15.

- As for SPLASH, we understand that talks are still underway to reach an amicable solution.

- Maintain NEUTRAL. 

Source: AmeSecurities