Vertice joint-venture company wins RM815m contract in related party deal

PETALING JAYA: Vertice Bhd's 50:50 joint venture (JV) company with Vizione Holdings Bhd, Buildmarque Construction Sdn Bhd was awarded an RM815 million contract by Consortium Zenith Construction Sdn Bhd to undertake construction works for Package 2 of the Penang Mega Infrastructure Project.
The award is for the construction of a 5.7km by-pass from Bandar Baru Ayer Itam to Lebuhraya Tun Dr Lim Chong Eu, to be completed within 36 months.
The parties of the JVA are in the midst of arranging for the subscription of shares in Buildmarque (currently wholly owned by Vertice). Each party will eventually hold 50% equity interest.
Consortium Zenith, in which Vertice has a 13.2% investment ownership, had in 2012 participated in an open tender by the Penang state government and were among the 60 bidders for the mega project. Consortium Zenith was awarded the project which comprises three highways and an undersea tunnel.
Vertice is a related party by virtue of the shareholding of its major shareholders, Vista Lestari Development Sdn Bhd and Datuk Zarul Ahmad Mohd Zulkifli in Zenith Construction Sdn Bhd, the holding company of Consortium Zenith.
Vizione said it enlarges its order book and is expected to provide a steady stream of revenue for the group over the next three financial years.