KUALA LUMPUR (Nov 6): Kerjaya Prospek Group Bhd has secured a RM104.73 million contract for the execution and completion of a housing development in Penang.

The construction firm via its wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd received the letter of award from Persada Mentari Sdn Bhd (PMSB) on Nov 6, according to Kerjaya Prospek’s bourse filing.

PMSB is an indirect subsidiary of Eastern & Oriental Bhd (E&O), which is linked to Kerjaya Prospek independent and non-executive chairman Datuk Tee Eng Ho and executive director Datuk Tee Eng Seng, as they both sit on E&O’s board and are also substantial shareholders in the premier lifestyle property developer firm.

The contract covers the execution and completion of 69 units of three-storey semi-detached and three-storey terraced houses for the proposed development at Seksyen 2, Pulau Andaman in Penang.

The contract, which shall commence on Dec 1, 2023 and be completed within 26 months, is expected to increase and enhance the group's existing order book and provide an additional stream of revenue over the next two years.

"The acceptance of the contract is in the ordinary course of business of Kerjaya Prospek and is undertaken on an arm’s length basis, based on normal commercial terms which are not more favourable than those generally available to the public.

"The contract will have no effect on the issued share capital of the company but it is expected to contribute positively to the earnings and net assets per share of the group for the financial years ending 2023 to 2025," it added.

Last month, Kerjaya Prospek said it had surpassed its target of securing RM1.2 billion worth of new contracts in 2023, after securing RM1.5 billion new jobs as of Oct 10.

Kerjaya Prospek shares settled up eight sen or 5.71% to RM1.48 on Monday, valuing the group at RM1.88 billion.

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