Mercury Industries bags RM238 mil construction job

KUALA LUMPUR (Feb 22): Mercury Industries Bhd’s 70%-owned construction unit Paramount Bounty Sdn Bhd has won a mixed development project worth RM238 million in Gombak, Selangor.

The project comprises 1,632 units of small office home office and 32 shoplots, said Mercury Industries in a filing.

The company expects the contract to contribute positively to its financial performance. The completion period is 27 months from the commencement of construction.

The contract was awarded via a letter of appointment by Veritas Architects Sdn Bhd, the architect appointed by Pujian Development Sdn Bhd, which in turn is the turnkey contractor for EcoFirst Hartz Sdn Bhd.

Both Pujian Development and EcoFirst Hartz are wholly-owned subsidiaries of EcoFirst Consolidated Bhd.

Mercury Industries said the contract is deemed as a related party transaction as the company shares a common shareholder with EcoFirst, namely Datuk Tiong Kwing Hee.

Tiong is Mercury Industries’ executive director and EcoFirst’s chief executive officer. He is a major shareholder of both companies.

Mercury Industries’ share price closed unchanged at 26.5 sen yesterday, giving it a market capitalisation of RM50.63 million.

This article first appeared in The Edge Financial Daily, on Feb 22, 2017.

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