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Eversendai says unable to give value breakdown on RM5.4b projects due to NDAs

KUALA LUMPUR (March 18): Eversendai Corp Bhd, which announced last week that it had secured four new projects worth an aggregate RM5.4 billion, said it is unable to provide a value breakdown of the projects due to non-disclosure agreements (NDAs).
The construction group, whose shares have surged 68.3% since the announcement of the hefty contract wins, only disclosed the names of the companies that awarded the jobs, its recipient units, the date the contracts were secured as well as the projects’ tenures, as it provided further details on the projects in a bourse filing on Monday.
“We are unable to provide a breakdown of project/contract value as this would violate the NDAs signed as well as jeopardise our position with our competitors and clients,” the group said.
The group said its unit Eversendai Engineering Saudi LLC, in collaboration with Albawani Co Ltd, bagged a job for the structural steel signature building at the Trojena Ski Village from NEOM Company on March 7 for a tenure of 28.5 months.
Meanwhile, Eversendai Mega Structure FZ LLC’s project in the UAE for the structural steel works for the Wynn Al Marjan Island Integrated Resort Development in Ras Al Khaimah was awarded by ALEC Engineering and Contracting LLC — RAK Branch on Dec 4, 2023, for a tenure of 11.5 months.
Its subsidiary in India, Eversendai Construction Pt Ltd, secured structural steel projects from RUPA Infotech & Infrastructure Pt Ltd (spanning 23 months) and Maryland Infrastructure Pt Ltd (spanning 25 months) on March 8. The projects are for the Rupa IT building and the Rupa Crystal IT building.
On Eversendai Engineering Saudi’s contract win, the group said the unit is in talks with Albawani over formalising its collaborating relationship over the job, but noted that this will not be in the form of establishing a joint venture (JV).
“Discussions are in progress and once formalised, we will make the announcement,” Eversendai said.
“No incorporated [JV] will be formed, this is a project-specific collaboration,” it added.
In addressing the delay between the dates the contracts were secured and the announcement to the bourse, Eversendai explained that this was due to the NDAs, as it is required to obtain consent from its end clients for any public announcement.
“We are also constrained in making any single project announcement which jeopardises our position with our competitors and clients by disclosing the exact contract value for each individual project,” it added.
Shares in Eversendai ended 2.5 sen or 7.81% higher at 34.5 sen on Monday, valuing the group at RM269.48 million.
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Source: EdgeProp.my

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