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OTHERS ADVANCECON HOLDINGS BERHAD ("ADVANCECON" OR "THE COMPANY") - ACCEPTANCE OF LETTER OF ACCEPTANCE BY ADVANCECON INFRA SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY FROM CHINA COMMUNICATIONS CONSTRUCTION (ECRL) SDN BHD

ADVANCECON HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
ADVANCECON HOLDINGS BERHAD ("ADVANCECON" OR "THE COMPANY")
- ACCEPTANCE OF LETTER OF ACCEPTANCE BY ADVANCECON INFRA SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY FROM CHINA COMMUNICATIONS CONSTRUCTION (ECRL) SDN BHD

Introduction

 

The Board of Directors of Advancecon Holdings Berhad ("Advancecon" or “the Company") is pleased to announce that Advancecon Infra Sdn Bhd (“AISB”), a wholly-owned subsidiary of the Company had on 17 September 2020 accepted the Letter of Acceptance (“LOA”) from China Communications Construction (ECRL) Sdn Bhd for the appointment of AISB as the subcontractor for the construction and completion of subgrade and related works for the East Coast Rail Link Project, for a total subcontract sum of RM29,791,537.62 (“the Contract”).

 

The contract period shall be for approximately 14.5 months commencing from 1 March 2021 and shall be completed by 15 May 2022.

 

AISB is principally involved in the business of providing earthworks and civil engineering services.

 

Risk Factors

 

There are no foreseeable significant risks other than operational risk associated with the Contract during the contract period.

 

Financial Effects

 

Barring any unforeseen circumstances, the Contract is expected to contribute positively towards the future earnings of Advancecon Group for the duration of the Contract and will not have any effect on the share capital and substantial shareholders’ shareholdings of Advancecon Group.

 

The Group intends to fund the Contract via internally generated funds and/ or external borrowings.

 

Directors' and Substantial Shareholders' Interest

 

None of the Directors’ and/or substantial shareholders and/or any person connected to them has any interest, either direct or indirect in the Contract.

 

Directors’ Statement

 

The Board of Directors, after due consideration, is of the opinion that the Contract is in the best interest of the Group. The Contract is being entered into in the ordinary course of business and is not subject to the approval of shareholders of the Company.

 

This announcement is dated 17 September 2020.






Announcement Info

Company Name ADVANCECON HOLDINGS BERHAD
Stock Name ADVCON
Date Announced 17 Sep 2020
Category General Announcement for PLC
Reference Number GA1-17092020-00059




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