Kerjaya Prospek Group Berhad has signed a framework agreement with Samsung C&T (KL) Sdn. Bhd. allowing both parties to embark on a long-term partnership where they can leverage on each other’s strong capabilities.
Under the agreement, both parties will jointly pursue various types of business opportunities for construction contracts exceeding RM300 million. The agreement will remain in force for a period of five years and will automatically be renewed on a rolling basis after the expiry for subsequent periods of one year until the agreement is terminated by either party.
In an effort to align long-term interest, Samsung will subscribe to Kerjaya’s proposed private placement of approximately 25.2 million new shares (approximately 2.04% of Kerjaya’s existing issued share capital) at RM1.60 per share, via their wholly-owned subsidiary Vista Contracting & Investment Global Pte Ltd. Kerjaya will raise approximately RM40.4 million, through this private placement, which shall be utilised for working capital for on-going projects and expenses in relation to the private placement.
On the collaboration, Kerjaya chief executive officer and executive director Tee Eng Tiong said, “This partnership marks a significant milestone for Kerjaya as it indicates that our strong capabilities in delivering unique and high-quality developments have been recognised by a global multinational conglomerate like Samsung.
Samsung C&T executive vice president Hyuk Shin said, “Kerjaya has proven its expertise and quality in the construction industry. With the best of both companies, we believe it will create a collaborative and synergistic partnership in Malaysia. The collaboration will also help to further propel our growth in the construction market.”