A joint-venture (JV) agreement has been inked between an OCR Group Bhd affiliated company and the Pahang State Development Corp (Perbadanan Kemajuan Negeri Pahang – PKNP) to facilitate works for the Pahang portion of the East Coast Rail Link (ECRL) project.
The company, Landasan Surimas Sdn Bhd, is 40% owned by Kirana Masyhur Sdn Bhd, which is in turn 40% owned by OCR. The JV was dated June 18, and is for the establishment of a JV company called Taraf Raya Sdn Bhd, according to the Bursa filing dated June 19.
Taraf Raya will provide the mechanical and civil work relating to the Pahang portion of the ECRL, subject to the final contract to be entered into by Taraf Raya, Malaysia Rail Link Sdn Bhd and China Communications Construction (ECRL) Sdn Bhd.
Taraf Raya will also see 70% of its shares held by Landasan Surimas, with the remaining 30% held by PKNP. This allows Landasan Surimas to nominate five directors to the board, while PKNP shall be entitled to three. The golden share remains in the control of PKNP.
“After taking this into consideration, the board of OCR is of the opinion that the JV is in the best interest of the company,” said the filing.
At the end of the trading day, OCR’s shares were last done at 41.5 sen, down a sen, with 57.13 million shares changing hands. – June 19, 2020
