Vivocom, Pegasus Diversified unit team up to bid for ECRL deal

PETALING JAYA: Vivocom Intl Holdings Bhd is teaming up with MACfeam Sdn Bhd (MSB) to bid for the RM55 billion East Coast Rail Line (ECRL) project.
The group told Bursa Malaysia that its unit Vivocom Enterprise Sdn Bhd (VESB) had entered into heads of agreement with MSB to form a consortium to jointly tender for the ECRL job.
MSB, a unit of Pegasus Diversified Bhd, provides services to engineering, construction fields, manufacturing, fabrication and supply especially in the oil and gas industries and power generation development.
Both parties have agreed to execute the agreement to outline principal terms and conditions to establish rights and obligations in relation to the consortium and collaboration on the project. The joint venture was formed on a 60:40 basis, with VESB holding a 60% stake in the consortium.
Vivocom said it will finance the cost and outlay by way of internally generated funds and/or bank borrowings. Barring unforeseen circumstances, the group said the proposed collaboration is expected to contribute positively to its future earnings.
ECRL is an electrified railway line connecting the east and west coasts of Peninsular Malaysia. The project has 22 stations along a 688km line from Pengkalan Kubor, Kelantan to Port Klang, Selangor.
Vivocom shares closed unchanged at 14.5 sen with 40.76 million shares traded today.