KUALA LUMPUR: Kerjaya Prospek Group Bhd, via wholly-owned Kerjaya Prospek (M) Sdn Bhd, has today signed a framework agreement with Samsung C&T (KL) Sdn Bhd to jointly pursue various types of business opportunities for construction contracts exceeding RM300 million.
Samsung C&T is a wholly-owned subsidiary of Samsung C&T Corporation (Engineering & Construction Group).
In a statement today, Kerjaya Prospek said Samsung C&T would subscribe to its proposed private placement of 25.2 million new shares (or a 2.04 per cent stake of its existing issued share capital) at RM1.60 per share.
This is via Samsung C&T's wholly-owned subsidiary Vista Contracting & Investment Global Pte Ltd.
Kerjaya Prospek said it would raise RM40.4 million from the private placement, which would be ued for working capital for ongoing projects and expenses in relation to the private placement.
Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong said the partnership marked a significant milestone for the company.
It indicated that the company's strong capabilities in delivering unique and high-quality developments have been recognised by a global multinational conglomerate like Samsung C&T, he added.
"We are excited about this partnership as we will gain access to Samsung's construction expertise, further sharpening our competitiveness to enable us to stay at the forefront of the construction sector.
"We strongly believe this partnership will create compelling and sustainable value propositions for the group and its shareholders," he said.
Samsung C&T executive vice president Hyuk Shin said Kerjaya Prospek had 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," Hyuk said.