Advancecon bags RM11.54 mil ECRL subcontract

• The job will start from April 29 and is expected to complete in September. SESB is principally a quarry operator and contractor of civil engineering works.

KUALA LUMPUR (April 25): Advancecon Holdings Bhd’s unit has been appointed as a subcontractor for the construction and completion of subgrade earthwork of section five of the East Coast Rail Link (ECRL) project for RM11.54 million.

In a bourse filing, Advancecon said its indirect 51%-owned subsidiary Spring Energy Sdn Bhd (SESB) accepted the award letter from China Communications Construction (ECRL) Sdn Bhd for the appointment.

The job will start from April 29 and is expected to complete in September. SESB is principally a quarry operator and contractor of civil engineering works.

Advancecon said the subcontract is expected to contribute positively towards the future earnings of the group for the duration of the subcontract, and will not have any effect on the share capital and substantial shareholders’ shareholdings of Advancecon Group.

The group intends to fund the subcontract via internal funds and/or external borrowings.

Advancecon shares gained 2.13% or half a sen to close at 24 sen on Tuesday (April 25), valuing the company at RM137.41 million.