Vizione bags RM130m sub-contract works, forms JV to expand RE exposure - MIDA | Malaysian Investment Development Authority
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Vizione bags RM130m sub-contract works, forms JV to expand RE exposure

Vizione bags RM130m sub-contract works, forms JV to expand RE exposure

11 Feb 2022

Integrated construction engineering group Vizione Holdings Bhd has bagged sub-contract works worth RM130 million from Permata Rebana Sdn Bhd to build a medical lab at Bandar Enstek, Seremban, Negeri Sembilan.

Permata Rebana, a building and civil engineering contractor, is the main contractor for the project, which was awarded to it by the Ministry of Health.

In a bourse filing on Friday (Feb 11), Vizione said its wholly-owned subsidiary Vizione Builder Sdn Bhd has entered into a joint venture (JV) agreement with Permata Rebana to jointly undertake the proposed project.

“The JV agreement is expected to contribute positively to the group’s earnings and earnings per share, as the earnings would be realised in stages over the tenure of the JV agreement,” it added.

In a separate filing, Vizione said it has teamed up with GPP Resources Bhd’s wholly-owned subsidiary GPP Gasification Sdn Bhd (GGSB) and Permata Rebana to form a JV company (JVCo) to share resources and expertise to undertake the production and sale of biomethane or biogas from palm oil mill effluent as a concession owner.

Vizione will hold a 45% ownership in the JVCo, while Permata Rebana and GGSB will own the balance 35% and 20% respectively.

“Through the JVCo, Vizione will be able to further its venture into the renewable energy (RE) space, especially following the memorandum of cooperation signed with Malaysian Green Technology and Climate Change Corp (MGTC) in May 2021 to explore RE opportunities including a biogas project. The biogas project will be undertaken on a Built-Own-Operate-Transfer basis,” it said.

The initial phase of the biogas project is expected to involve 12 palm oil mills at an estimated investment cost of between RM500 million and RM550 million.

“We are thrilled to begin 2022 with new partners onboard. There are plenty of compelling synergies between the parties and thus, we are confident that both joint ventures will yield positive outcomes. As Malaysia enters into the endemic phase of Covid-19, the group is also anticipating increased job flows from both the private and public sectors. Beyond that, our focus this year will be on executing and delivering our strong order book, which would subsequently translate to better financial performance,” Vizione managing director Datuk Ng Aun Hooi said in a separate statement.

Vizione shares closed down 0.5 sen or 6.67% at seven sen on Friday, giving it a market capitalisation of RM78.46 million based on 1.02 billion outstanding shares.

Source: The Edge Markets