T7GLOBAL (7228) T7 Global, ADVCON (5281) Advancecon to explore ECRL business opportunities
KUALA LUMPUR (Aug 14): Oil and gas service provider T7 Global Bhd has teamed up with Advancecon Holdings Bhd to explore business opportunities pertaining to the RM44 billion East Coast Rail Link (ECRL) project.
In separate bourse filings today, both companies said their subsidiaries T7 Kemuncak Sdn Bhd and Advancecon Infra Sdn Bhd have today signed a collaboration agreement for the purpose.
"The agreement will provide opportunities for the parties to establish a strategic partnership for various activities pertaining to the ECRL project based on the respective party's expertise and strengths, which allow the parties to tap into each other's expertise and resources," they added.
T7 Kemuncak is involved in construction and infrastructure works, while Advancecon Infra provides earthworks and civil engineering services.
Should the collaboration materialises, T7 Global and Advancecon said it is expected to contribute positively to the two groups' future earnings.
T7 Global executive deputy chairman Tan Sri Tan Kean Soon noted that Advancecon Infra is permitted to tender for Malaysian government projects with unlimited value across the country.
"The construction industry today has to evolve and adapt quickly in the advent of new regulations. We are proud to be collaborating with an experienced partner whose expertise is widely recognised across the globe. The agreement will be underpinned by a synergy of combined skills and the convergence of our long-term strategies," he said in a separate statement.
On April 12, Malaysia Rail Link Sdn Bhd and China Communications Construction Co Ltd had signed a supplementary agreement that resumes the suspended ECRL project, at a lower price. The new ECRL alignment is now shortened by 40km to 648km, and starts from Kota Baru in Kelantan through Mentakab, Jelebu, Kuala Kelawang, Bangi/Kajang, Putrajaya and ends at Port Klang, Selangor.
T7 Global shares ended the morning session up 2 sen or 4.49% at 46.5 sen, with 848,000 shares traded, bringing a market capitalisation of RM233.23 million. Advancecon shares were 0.5 sen or 1.37% higher at 37 sen, with 282,700 shares done, giving it a market value of RM149.02 million.
See also:
ECRL is now 40km shorter but will still have double tracks
ECRL to proceed, cost reduced by RM21.5 bil
http://www.theedgemarkets.com/article/t7-global-advancecon-explore-ecrl-business-opportunities
