Property News

Industronics inks MOA for development of Langkawi duty-free city

KUALA LUMPUR (Oct 20): Industronics Bhd said it had entered into a memorandum of agreement (MOA) on Friday to negotiate a proposed collaboration to construct an international duty-free city on Pulau Langkawi.
The mature electronics company signed the MOA with Echo Asia (Hong Kong) Ltd, an affiliate of Hong Kong-listed Echo International Holdings Group Ltd, and CHEC Construction (M) Sdn Bhd, a wholly-owned subsidiary of  China Harbour Engineering Company Ltd.
Echo Asia is interested in building Asia’s largest international duty-free city in  Langkawi, and to appoint Industronics as the project management company, said Industronics in a filing with Bursa Malaysia.
Echo Asia, it said, will provide the necessary details for the intended Langkawi duty-free city, including the required land size, floor area, design specifications, and expected costs.
Industronics is tasked with engaging with landowners to secure the land for the development of the duty-free city, including negotiations pertaining to pricing, terms and conditions.
Meanwhile, CHEC will offer consultation services for the design of the duty-free city, and undertake construction. Additionally, CHEC will discuss potential investment in the project, which may involve contributing a portion of the construction costs associated with the duty-free city.
Industronics said the MOA will be valid for one year. Its renewal or termination will be subject to mutual agreement among the parties involved.
“The MOA will not have any effect on the share capital, shareholdings of major shareholders, net assets per share, and gearing of the group. If any collaboration agreement materialises, it is expected to have a positive impact on future earnings of the group,” the group added.
Shares in Industronics settled unchanged at four sen on Friday, giving the group a market capitalisation of RM28.3 million.
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Source: EdgeProp.my