Ibraco Bhd announced that its wholly-owned subsidiary Ibraco Construction Sdn Bhd (ICSB), had incorporated a joint venture, Ibraco Crec JV Sdn Bhd (ICJVSB) today (Jan 4) with an initial paid-up capital of RM2 million represented by 2 million ordinary shares.
In a Bursa filing today, the group said ICJVSB is incorporated for the purpose of the construction and completion of infrastructure works for Blue Line-Package 1 from Rembus to Stutong for Kuching Urban Transportation System Project.
The JV company comprises of ICSB, China Railway Engineering Corporation (M) Sdn Bhd (CRECM) and Nanyang Tunnel Engineering Sdn Bhd (NYTE).
ICSB is the biggest shareholder of ICJVSB, with 51% shares while CRECM and NYTE holds 39% and 10% of the JV company respectlvely.
“The directors of the company, after having considered all aspects of the aforesaid incorporation, are of the opinion that the aforesaid incorporation is in the best interest of the company,” it said.
The incorporation is not expected to have any material effect on the earnings, gearing or net assets of the company for the current year, it added.
It was reported that the contract is valued at RM568.61 million, which will include constructing a 15km Autonomous Rapid Transit (ART) alignment, starting from the depot in Rembus and along the Kuching-Samarahan Expressway up to Stutong, seven stations, and a bridge that will cross Sungai Kuap.
