PETALING JAYA: Construction outfit Kerjaya Prospek Group Bhd wholly owned subsidiary Kerjaya Prospek (M) Sdn Bhd today signed a framework agreement with Samsung C&T (KL) Sdn Bhd, a wholly owned subsidiary of Samsung C&T Corp (Engineering & Construction Group) to embark on a long-term alliance that is expected to accelerate growth for both companies in the construction industry in Malaysia.
The partnership aligns both companies for the long-term by combining the strengths of Kerjaya in high-rise constructions with Samsung C&T’s expertise in complex and sophisticated buildings.
Under the agreement, both parties will jointly pursue various types of business opportunities for construction contracts exceeding RM300 million. The agreement will remain in force for a period of five years and will automatically be renewed on a rolling basis after the expiry for subsequent periods of one year until the agreement is terminated by either party.
In an effort to align long-term interest, Samsung will subscribe to Kerjaya’s proposed private placement of 25.2 million new shares (2.04% of Kerjaya’s existing issued share capital) at RM1.60 per share, via their wholly owned subsidiary Vista Contracting & Investment Global Pte Ltd. Kerjaya will raise RM40.4 million through this private placement, which will be utilised for working capital for on-going projects and expenses in relation to the private placement.
Kerjaya CEO and executive director Tee Eng Tiong said with this partnership, it will gain access to Samsung’s construction expertise, further sharpening its competitiveness to stay at the forefront of the construction sector.
