Vivocom eyes more China construction jobs

Vivocom 01

Earlier this week, New Straits Times carried an exclusive front cover report on Vivocom Int’l Holdings Berhad for subscribers of its print edition. The report offers investors a glimpse into the company’s aspirations, and extracted here for readers’ information:

Vivocom keen on pacts in China

Vivocom

Group to carry out more projects in the country as part of diversification move

Vivocom Int’l Holdings Berhad is working on establishing strategic partnerships with several construction groups in China to take on more construction projects in the country.

However, executive director Choo Seng Choon declined to go into details, saying that “appropriate announcements would be made once official partnerships have been formalised”.

This serves to complement its construction subsidiary, Vivocom Enterprise Sdn Bhd (VESB).

VESB is principally involved in civil engineering and construction and has made a name for itself in the industry.

Choo said Vivocom, previously a pure-play telecommunications solutions provider, decided to venture into construction to diversify its business base and develop new revenue streams.

Neata Aluminium is a one-stop centre for the supply, design, fabrication and installation of aluminium structures for property development projects.

“The intention of moving into the construction and aluminium sectors was to diversify the group. It was part of a plan to position on the group on a solid footing, in terms of having sustainable and recurring revenue growth,” Choo told NST Business.

“Previously, our main income was from telecommunications. In diversifying the income base we now have various revenue streams and they have been growing steadily.”

Recently, the group received a letter of award from Almaventures Development Sdn Bhd worth RM143 million to construct 902 units of affordable housing in Gombak, here.

Earlier this month, Vivocom also secured a RM27.57 million contract from China Construction Third Engineering Group (M) Sdn Bhd for aluminium and glazing works in Melaka.

This is on top of Vivocom’s appointment as the turnkey contractor for a mixed development project worth RM160 million in Ipoh, Perak.

Choo said as part of the rebuilding process, the group had assembled an experienced and solid management team to chart its future growth.

“We have been steadily growing our management team and our workforce. We are also putting into place ‘best practices’ to ensure we complete our projects to exacting standards, while aiming for completion ahead of schedule. At this stage, we are focused on winning more projects.”

Last week, Vivocom announced that it was embarking on a two-for-three rights issue to raise up to RM75.27 million (together with one-for-two free “Warrant E” for every two rights shares subscribed).

Of the amount, RM49.07 million will be used for working capital, while RM25 million will be for future viable investments, which include mergers and acquisitions of businesses or investments, while the remaining will be for other estimated expenses.

Vivocom is also in a joint-venture (JV) with Pegasus Diversified Bhd to vie for contracts under the East Coast Rail Line (ECRL) project.

The JV will tender for contracts called by ECRL’s engineering, procurement, construction commissioning contractors, namely China Communications Construction Company Ltd and China Communications Construction Company (M) Sdn Bhd.