KUALA LUMPUR: Ageson Bhd’s wholly-owned subsidiary, Esa Pile Sdn Bhd has accepted a purchase order from Guangzhou Kaishengda Industrial Co Ltd (GKI) for river sand and sea sand for a period of 15 years, a contract valued about Chinese Renminbi 44.8 billion (approximately RM27.5 billion).
In a filing to Bursa Malaysia today, the company is expected to supply 50 million cubic metres of river sand per year and a 100 million cubic metre of sea sand per year to GKI starting from the third quarter this year.
The group said the contract is expected to further strengthen its international export market and its trading business for sustainable earnings in a long period of time while creating synergistic business opportunities with GKI. It added the purchase order will not have any effect on the issued share capital and substantial shareholders’ shareholdings or the gearing of the group for the financial year ending June 30 2020.
However, it is expected to contribute positively to the company’s future earnings, earnings per share and enhance its consolidated net asset. - Bernama
