Pansar unit gets RM107.5m Sarawak road contract

KUCHING: Pansar Bhd’s wholly-owned subsidiary Perbena Emas Sdn Bhd has secured a road contract worth RM107.5 million in Sarawak.

The construction arm of Pansar has received a letter of acceptance from Sarawak Public Works Department for the proposed construction and completion of Sarawak Coastal Road remaining works for ‘Package D2A: Proposed construction and completion of approach road for the proposed Batang Lupar Bridge, Samarahan/Betong Division’ with a contract value of RM107.5 million.

“The scope of work includes the construction and completion of approach roads, comprising a new JKR R5 standard two-lane carriageway for Sebuyau and Trison side.

“The contract period is 32 months and the project is scheduled to commence December 2023,” Pansar said in a filing with Bursa Malaysia.

Pansar said the contract is expected to contribute positively to the group’s earnings and net assets as the project progresses during the contract period. 

Separately, OM Holdings Limited (OMH) said it has entered into a share subscription agreement with JFE Shoji Corporation (JFE) for the issuance of 27,633,464 fully-paid ordinary shares at an issue price of A$0.472 per share to the latter for a total consideration of about A$13.04 million.

“The subscription shares to be issued to JFE under the share subscription agreement are expected to be issued, and quoted on ASX, on Dec 4 2023. The issue price represented the volume weighted average price per OMH share traded on ASX over the 10 trading day period ending on Nov 24 2023.

“The net proceeds from the issuance of the subscription shares to JFE will be used for working capital purpose,” added OMH, which owns and operates a ferroalloy smelting plant via OM Materials (Sarawak) Sdn Bhd in Samalaju Industrial Park, Bintulu.

The subscription shares to be issued represents approximately 3.75 per cent of the company’s total existing issued shares (excluding treasury shares).

JFE, a wholly-owned subsidiary of JFE Holdings Inc, is a Japanese international trading company with business operations mainly in the marketing and distribution of steel products, raw materials for steel and machinery.

JFE has an established business relationship with OMH for over two decades, most recently as a pioneer offtake partner with OM Materials (Sarawak) Sdn Bhd as well as a lender to OM Material (S) Pte Ltd (OMS) with the sole purpose of facilitating the early phases of expansion of OM Sarawak.

The outstanding loan between JFE and OMS was repaid in November 2023.