Jati Tinggi unit bags RM47mil deal

PETALING JAYA: Jati Tinggi Holding Sdn Bhd, a full subsidiary of Jati Tinggi Group Bhd (JTGB), has secured a contract with YM Teras Sdn Bhd (YMTSB) for the installation, testing and commissioning of 11 kilovolts of underground cable works.

The contract is deemed to be worth RM46.7mil, and is estimated to take 600 days to complete.

In a filing with Bursa Malaysia yesterday, JTGB said the terms of payment for the project will be within thirty days after acceptance and approval of the progressive claims by YMTSB, with each approved progressive claim being subject to 10% of retention.

The filing said the retention sum shall be recoverable upon expiry of the defect liability period, which is 12 months from the completion date.

JTGB said the job is expected to contribute positively to its future earnings, earnings per share and net assets per share over the duration of the contract, and will not have any effect on the group’s share capital and the shareholdings of its substantial shareholders.