MGB inks preliminary deal with Saudi company for RM2.89b IBS collaboration

• According to MGB’s filing with Bursa Malaysia, SANY intends to appoint MGB for the supply and installation of industrial building system (IBS) precast concrete products of up to 10,000 units of properties under the Saudi Sakani programme, to be completed within five years.

KUALA LUMPUR (Jan 13): Construction engineering company MGB Bhd on Friday (Jan 13) inked a memorandum of understanding (MOU) with real estate development company SANY Alameriah For Construction Co Ltd to collaborate on projects in Saudi Arabia.

According to MGB’s filing with Bursa Malaysia, SANY intends to appoint MGB for the supply and installation of industrial building system (IBS) precast concrete products of up to 10,000 units of properties under the Saudi Sakani programme, to be completed within five years.

MGB, a subsidiary of LBS Bina Group Bhd, said the value of the supply and installation of the units is approximately 2.5 billion Saudi riyals (RM2.89 billion).

Besides that, MGB said SANY intends to collaborate with MGB to operate a precast concrete factory located in Jeddah that will supply the IBS precast concrete products for the construction units.

The group said the MOU is effective for six months and shall be terminated if SANY did not award the construction of units to MGB within the period.

“The MOU will allow the company to explore potential business opportunities in the Kingdom of Saudi Arabia and set out the general framework and intentions in respect of the collaboration between the parties,” MGB said.

“The collaboration is in line with MGB’s intention of expanding its geographical footprint and industry presence in construction and precast concrete manufacturing business,” it added.

On Friday, MGB shares closed 5.5 sen lower at 49.5 sen, valuing the group at RM292.87 million.