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Wednesday, July 30, 2014

Zelan up 6% on anticipation of Terengganu bridge contract win (Edge)

Zelan Bhd rose as much as 6% after The Edge Financial Daily reported that the builder might clinch a RM250 million drawbridge construction contract in Terengganu.

At 10.09am, Zelan was traded at 33 sen with some 9.3 million shares done. The stock had earlier risen as much as two sen to 34 sen...

The Edge Financial Daily, quoting sources, reported today that Zelan was expected to bag a RM250 million contract from the East Coast Economic Region for the construction and completion of a drawbridge connecting Muara North and Muara South in Kuala Terengganu.

“Zelan is partnering Hasrat Sedaya Sdn Bhd, an engineering company specialising in bridge construction. They have a 70% and a 30% equity interest in the joint venture respectively,” said the sources.

Zelan outbid a few other public-listed companies for the drawbridge job, the sources said. Some of these companies included Bina Puri Holdings Bhd and Muhibbah Engineering (M) Bhd.

Last Thursday (July 24), Zelan made news when the firm announced it had secured a RM248.5 million project from national oil company Petroliam Nasional Bhd (Petronas).

Zelan said then it had secured a contract to build and operate material off-loading facilities for Petronas' Refinery and Petrochemical Integrated Development (Rapid ) in Pengerang, Johor.

Zelan said it had received  the letter of award from Petronas Refinery and Petrochemical Corp Sdn Bhd for the 18-month project within the Tanjung Setapa area.

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