OTHERS VIVOCOM INTL HOLDINGS BERHAD ("VIVOCOM" OR THE "COMPANY") (Formerly known as Instacom Group Berhad) - APPOINTMENT OF VIVOCOM ENTERPRISE SDN BHD AS THE TURNKEY CONTRACTOR FOR THE DEVELOPMENT ON HSD 228147, PT 262096, MUKIM HULU KINTA
|VIVOCOM INTL HOLDINGS BERHAD|
VIVOCOM INTL HOLDINGS BERHAD ("VIVOCOM" OR THE "COMPANY") (Formerly known as Instacom Group Berhad) - APPOINTMENT OF VIVOCOM ENTERPRISE SDN BHD AS THE TURNKEY CONTRACTOR FOR THE DEVELOPMENT ON HSD 228147, PT 262096, MUKIM HULU KINTA
The Board of Directors (“the Board”) of Vivocom is pleased to announce that on 1 September 2016, Vivocom had vide its subsidiary company, Vivocom Enterprise Sdn Bhd (“VESB”), entered into heads of agreement (“HoA”) with Dazamega Ventures Sdn Bhd (“Dazamega”) to be appointed as the turnkey contractor for the development on a piece of land located at HSD 228147, PT 262096, Mukim Hulu Kinta (“ Project” or "Proposed Development").
Subject to the execution of the final agreements, Dazamega will appoint VESB as the turnkey contractor for the Project. The estimated Gross Development Value (“GDV”) for the project is RM 600 million, comprising of six blocks of 22-storey residential condominium. The execution of the final agreements shall be conditional upon the finalisation and completion of the contract bill of quantities.
Further details of the Project will be announced upon the execution of a formal final agreement between the Parties.
2. SALIENT TERMS OF THE HOA
The salient terms of the HoA include, amongst others, the following:-
2.1 Proposed Development
2.1.1 Dazamega is the developer to develop the Land with an estimated gross development value of approximately RM600 million (Ringgit Malaysia Six Hundred Million) to build 6 blocks of 22 storeys condominium.
2.1.2 Subject to the terms and conditions of the HoA, Dazamega will appoint VESB as the turnkey contractor to design, construct the structures, infrastructures and all associated works on the said Development. In turn, VESB is required to complete the construction of the whole development within 48 months after the launch.
2.1.3 The Parties are not obligated to proceed with the Proposed Development unless the terms and conditions of a final agreement is agreed upon and executed by 30 Sept 2016, unless further extended by mutual agreement between the Parties.
3. SOURCES OF FUNDS
The cost and outlay by VESB as the turnkey contractor to implement the Project have not been fixed and shall be determined once the terms and conditions of a final agreement is mutually agreed upon by the Parties. Once determined, VESB will finance the cost and outlay by way of the internally generated funds and/or bank borrowings, as and when required.
4. FINANCIAL EFFECTS
Barring unforeseen circumstances, the Proposed Development is expected to contribute positively to the future earnings of Vivocom.
Further details of the financial effects arising from the Proposed Development will be announced upon the execution of the final agreement by the Parties.
5. INTERESTS OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND/OR PERSONS CONNECTED
None of the directors and/ or substantial shareholders and/ or persons connected to the directors and/ or substantial shareholders of Vivocom have any interest, whether direct or indirect, in the Proposed Development.
This announcement is dated 1 September 2016
|Company Name||VIVOCOM INTL HOLDINGS BERHAD|
|Date Announced||01 Sep 2016|
|Category||General Announcement for PLC|