O&C Resources signs MoU with USIM to build in-campus student accommodations

KUALA LUMPUR (Jan 6): O&C Resources Bhd (OCR) will begin discussions with Universiti Sains Islam Malaysia (USIM) to jointly build two student accommodation for the latter.

In a filing with Bursa Malaysia yesterday, OCR said its 80%-owned subsidiary Visi Anggun Properties Sdn Bhd (VAPSB) has signed a Memorandum of Understanding (MoU) with USIM for further discussion and arriving at the details of the joint-collaboration to plan, build, design and construct and operation of student accommodation.

OCR said the MoU will pave the way for the two parties to establish a basis of cooperation and collaboration in building two in-campus students accommodation by way of build-operate-transfer concept for 4,200 students.

"This MoU serves as an initial understanding towards further discussion and arriving at the details of the joint-collaboration to plan, build, design and construct and operation of students' accommodations and to be formalised by way of a further legally binding agreement subject to the terms and conditions as mutually agreed upon by VAPSB and USIM," it added.

The validity of the MoU will be binding for one year from today. It may be extended for a further period as agreed by both parties.

To recap, OCR had on Dec 22 last year announced to the exchange that VAPSB has received a letter of interest from USIM to take necessary steps to encourage and promote cooperation in the abovementioned areas.

OCR shares closed unchanged at 47 sen yesterday, giving it a market capitalisation of RM112.07 million. — theedgemarkets.com