The Board of Directors of Citaglobal Berhad (formerly known as WZ Satu Berhad) (“Citaglobal” or “Company”) wishes to announce that CESSB, a wholly-owned subsidiary of the Company had on 6 March 2023 received and accepted a Letter of Intent dated even date from Mutiara Perlis Sdn Bhd (“MPSB”), as the EPC contractor for the development of the Sanglang Project (“Letter”).
In accordance to the Letter, the full development of the Sanglang Project is divided into four phases i.e. Phase 1A, Phase 1B, Phase 2 and Phase 3 which MPSB is preselecting CESSB as EPC for Sanglang Project Phase 1A.
Pursuant to the Letter, CESSB and MPSB will begin the process of drafting and finalising an EPC contract and mobilization of work of Phase 1A for a contract sum of RM200 Million.
The Letter will remain valid for a period of three months from the date of the Letter, unless terminated or CESSB and MPSB have entered into an EPC contract to which the Letter will be suspended, whichever is earlier.
The Letter is not subject to the approval of shareholders of the Company or any relevant authorities.
The Letter will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of the Company.
Upon award of the contract, Sanglang Project is expected to contribute positively to the consolidated earnings, earnings per share and net assets of the Company. We can only ascertain the period of contribution upon execution of the EPC contract.
The Company does not foresee any exceptional risk other than the normal operational risks associated with the Letter. Nevertheless, the Company will take the necessary steps to mitigate the risk as and when it occurs.
None of the Directors and major shareholders of the Group and/or persons connected to them has any interest, whether direct or indirect, in the Letter.
Information on Sanglang Project
Sanglang Project is developed under the Perlis Maritime Corridor (“PMC”) project, which aims to facilitate the local development in term of logistics, tourism, aquaculture and fisheries. Sanglang Project will provide jetty facilities for berthing of merchant ships, luxury cruise and yachts, deep-sea fish and oil and gas; and provide maintenance, repair and overhauling services for merchant ships.
In the recent Retabled Budget 2023 published on 24 February 2023, the budget is also given to support the Sanglang Project as Sanglang Port to handle petroleum cargo and bulk cargo that will add value to the Perlis economy.
The PMC project was approved by the State Government of Perlis in May 2017 and developed by MPSB – a joint venture by a local company Mutiara Infra Sdn Bhd and Menteri Besar Incorporated Perlis. The PMC project will be located along the coast of Sanglang until Simpang Ampat, Perlis. It is expected to create 5,000 job opportunities and is expected to be the catalyst for development in Sanglang, as well as the development in Chuping Valley such as Chuping Valley Industrial Area (CVIA), Perlis Inland Port (PIP) and others.
This announcement is dated 6 March 2023.