Gabungan AQRS in PR1MA project tie-up

Gabungan AQRS Bhd, via wholly owned subsidiary Gabungan Strategik Sdn Bhd (GSSB), will be co-developing PR1MA Homes in Kuantan, Pahang, for RM424.23mil.

In a filing with Bursa Malaysia, Gabungan AQRS said GSSB had entered into a joint-venture (JV) agreement with contractor Monolight IBS Building System Sdn Bhd to construct, develop and complete the development of PR1MA Homes on 182,000 sq m of land in Kuantan.

The construction and property development company said the JV shall operate as a turnkey contractor to develop, construct and complete the project and shall assume all undertakings, responsibilities and obligations as Monolight.

“The rationale of the JV is for the JV to assume all responsibilities and obligations of Monolight in the master agreement as a turnkey contractor in undertaking to develop and complete the project in accordance with the terms of the master agreement,” it said.

The agreement will see Monolight holding a 51% stake in the JV. The agreement sum is worth more than Gabungan AQRS’ market capitalisation of RM390.5mil.

The company said the responsibilities and obligations of the JV would also include carrying all processes and measures necessary and incidental to the construction and completion of the works for the project, testing and commissioning, in accordance with the master agreement.

Gabungan AQRS also said the parties would need to finance and/or seek financing for the construction and completion of the project.

“Barring unforeseen circumstances, the JV agreement is expected to contribute positively towards the earnings and earnings per share of Gabungan AQRS for the financial year ending Dec 31, 2016 and beyond.”

The company added that its gearing would be impacted by the banking facilities to be obtained by GSSB for the purpose of carrying out and completing the project.

Gabungan AQRS’ share price closed 10 sen higher at RM1 yesterday. The stock has been on a rally recently, having surged 22% since the end of last month.

On April 25, the company announced the appointment of Datuk Azizan Jaafar as its new chief executive officer. He replaced Ng Chun Kooi, who had been designated executive vice-chairman of the company

Azizan owns a 12.55% direct and indirect shareholding in Gabungan AQRS, held primarily through his investment company, Ganjaran Gembira Sdn Bhd. - The Star