KUALA LUMPUR: Sunmow Holding Bhd's subsidiary Sunmow Construction Sdn Bhd's (SCSB) joint venture has won a RM1.2 billion contract for works related to Package 4B (Bukit Pagon to Long Luping) of Phase 2 of the Sarawak-Sabah Link Road project.
In a filing with Bursa Malaysia Securities today, SCSB said it had entered into a joint venture with Kemena Holding Sdn Bhd to bid for the said package on April 2, 2024.
The company received a letter of acceptance from the project's main contractor Maltimur Aktif Unggul JV Sdn Bhd on Aug 16, 2024.
Sunmow Construction is the lead partner with a 70 per cent stake while Kemena holds the remaining 30 per cent. Sunmow said the works should be completed within 48 months from the letter of acceptance, with the actual completion date certified by Maltimur Aktif Unggul.
The company said the works will be funded by internally generated funds and/or project financing.
"The JV will provide an opportunity to strengthen Sunmow Group's financial earning and fits into Sunmow Group's plan to continue to draw on the strength in construction activities and expand into road construction as well as to diverse complementary revenue streams to deliver value to shareholders," it noted.