KUALA LUMPUR (March 4): UEM Edgenta Bhd (KL:EDGENTA) has secured a RM40.43 million recurrent, related-party contract to provide traffic management plan and control services for two sections of the Kuala Lumpur-Karak Highway.
The contract, awarded by AFA Construction and Engineering Sdn Bhd (AFACE) to UEM Edgenta’s wholly-owned Edgenta Propel Bhd (EPB), is considered a related-party transaction because UEM Edgenta’s independent, non-executive chairman Tan Sri Dr Azmil Khalili Khalid is the sole owner and director of AFACE’s parent company, AFA Infrastructure and Development Sdn Bhd, according to UEM Edgenta in a bourse filing on Monday.
Azmil is also the sole shareholder of AFA Prime Bhd (formerly Anih Bhd), the concessionaire of the Kuala Lumpur-Karak Highway.
Under the contract, EPB is to provide traffic management plan and control services for sections one and two of the Kuala Lumpur-Karak Highway for four years, starting Monday until March 2, 2029, said UEM Edgenta.
“The transaction is undertaken on an arm’s length basis, based on normal commercial terms and terms which are no more favourable than those generally available to the public,” UEM Edgenta added.
The contract is expected to contribute to the group’s earnings from the financial year ending Dec 31, 2025 (FY2025).
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