Protasco Berhad ("PB") wishes to announce that its subsidiary HCM Engineering Sdn Bhd  has entered into a shareholder agreement with Kijang Kuari Sdn Bhd ("Kijang Kuari") to jointly undertake the following maintenance work on a 60:40 basis via a new company to be set up in due course. 

“ To supply, deliver and pave Asphaltic Concrete and Crusher Run for the state road of Kelantan  and to do all  incidental works necessary from the quarry to the site.”  (“Maintenance Work”)  

Kijang Kuari is a wholly-owned subsidiary of Kelantan State Economic Development Corporation (“KSEDC”). It is principally engaged in the business of construction and resource-based industry in the State of Kelantan.    

Kijang Kuari had been awarded the abovementioned Maintenance Work for a period of 10 years by the State of Kelantan via its Jabatan Kerja Raya (Public Works Department).

The contract sum of the Maintenance Work for the first two years has been fixed at RM25.7 million. The subsequent contract sum shall be reviewed by Jabatan Kerja Raya Kelantan every two years based on the prevailing market price of the material and labour costs in the state of Kelantan.

The Maintenance Work is expected to contribute positively to the Group’s earnings for the financial year ending 31 December 2016. 

None of the Directors, substantial shareholders of the Company or persons connected with them have any interests, direct or indirect, in the Maintenance Work.