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KUALA LUMPUR: The joint venture between Sunmow Holdings Bhd’s wholly owned subsidiary Sunmow Construction Sdn Bhd (SCSB) and Kemena Holding Sdn Bhd has been awarded a RM1.02 billion contract for the Sarawak-Sabah Link Road Phase 2 project.

Sunmow said in a filing with Bursa Malaysia today that the project is in relation to Package 4B (Bukit Pagon to Long Luping) and awarded through a letter of acceptance (LoA) from Maltimur Aktif Unggul JV Sdn Bhd (MAUJV), the main contractor for the project on Aug 16.

It said the practical completion of the works is 48 months from the date of the LoA and the date of actual practical completion is the date certified by MAUJV in the certificate of practical completion.

The JV will provide an opportunity to strengthen Sunmow group’s financial earning and fits into Sunmow group’s plan to continue to draw on the strength in construction activities and expand into road construction as well as to diverse complementary revenue streams to deliver value to shareholders.

Sunmow said the JV is expected to contribute positively to the future earnings and earnings per share of Sunmow group.

“The board is of the opinion that the LoA is not expected to have any material effect on the net assets per share of Sunmow group for the financial year ending Dec 31, 2024,” it added.