MINETECH Resources Bhd, one of Malaysia’s largest aggregate mining service provider, is gradually strengthening its business prowess outside the realm of its core activities.
Yesterday (Aug 12), the company announced today that its wholly owned subsidiary Minetech Construction Sdn Bhd has accepted a letter of award (LOA) from Wangsa Keringat Development Sdn Bhd to undertake the design and construction works of an elevated road in Selangor valued aboutt RM11.3 mil.
The road works is part of a four-block condominium project undertaken by Wangsa Keringat which is principally involved in civil construction, property development and project management for the private sector with a portfolio of more than RM500 mil in contracts.
This project will undoubtedly help Minetech’s construction division grow, according to the company’s executive director Matt Chin.
“We will continue to leverage on our expertise to secure projects that will strengthen the portfolio of work in the company’s construction division,” Chin pointed out.
“We believe that the domestic construction industry will stabilise in 2021 and we want to capitalise on any opportunity to realise the company’s potential in this industry”.
In late June, Minetec shareholders approved the company’s proposed private placement of 349.6 million new shares and the proposed rights issue of 582.66 million new irredeemable convertible preference shares (ICPS) on the basis of one ICPS for every two existing Minetec share.
The company is expected to raise proceeds amounting to approximately RM85.1 mil through the proposed private placement and ICPS, according to its executive chairman Pengiran Datuk Awang Daud Awang Putera.
Besides serving as working capital, the funds will be utilised to finance Minetech’s existing and future construction projects, the company’s diversification into oil & gas (O&G), expansion of Minetech’s existing businesses as well as future businesses, investments and acquisitions.
“The approval of the proposed private placement and ICPS will (also) allow us to shift our gearing into the renewable energy and O&G sectors which we have identified as potential revenue generators that could potentially contribute 25% or more to our net profit,” added Awang Daud.
At 9.11am, Minetech was unchanged at 14.5 sen with 115,500 shares traded, thus valuing the company at RM169 mil. – Aug 12, 2021
