MN Holdings Bhd (MNHB) announced today that its wholly-owned subsidiary Mutu Nusantara Sdn Bhd (MNSB) had accepted a letter of award (LOA) from ‘Company A’ in relation to works for a data centre located at Malaysia’s southern region worth RM98 million.
In a Bursa filing today (Jan 4), the company said it is unable to disclose the identity of ‘Company A’, a customer that provide data centre services, as it is not agreeable to provide consent for disclosure.
“(This is) due to the non-disclosure agreement executed with ‘Company A’ which prohibits the disclosure of information in relation to the customer without prior written consent,” it said.
MNHB said the LOA was awarded for a project involving design, supply, delivery, installation, testing and commissioning for high voltage horizontal directional drilling (HDD) and cable bridge works.
The contract sum of RM98 million only include the supply of labour, plant and materials for the construction, completion and maintenance during the defects liability period, it added.
“The contract commenced on Dec 1, and shall be completed, including for ‘ready for service’ Jan 15, 2023. The duration of the contract is 13.5 months.
“The contract period shall include all necessary mobilisation period from the date of commencement and issuance of Certificate of Completion and Compliance (CCC).”
However, the company said the parties have agreed that they may, by mutual consent, vary the date of commencement and that any such variations shall not affect the completion date.
It added the issuance of CCC shall be the pre-requisite requirement for issuance of the Certificate of Practical Completion (CPC), where MNSB is required to submit documents and information within one week upon the award of a contract.
Among the required submissions were for MNSB’s All Risks and Workmen’s Compensation Insurance together with receipts of
premiums paid in respect thereof, performance bond, Construction Industry Development Board (CIDB) levy and registration number, and a site management and supervisory personnel organisation chart indicating details of key personnel in MNSB.
The company said the acceptance of the LOA by MNHB to undertake is expected to contribute positively to the future earnings and earnings per share of the company.
“The contract will not have any effect on the issued share capital and the shareholding of the substantial shareholders of the company.
“The Board of Directors of MNHB, after due consideration of all aspects of the contract, is in the opinion that the acceptance of the LOA is in the best interest of the company,” it added.
