KUALA LUMPUR (June 5) – Encorp Bhd has signed a memorandum of understanding (MOU) with the Federal Land Development Authority (Felda), paving the way for a potential appointment as the contractor for a proposed staff housing development.
According to Encorp, the MOU reflects Felda's intention to appoint the company for the project, subject to the issuance of a letter of acceptance and the execution of definitive agreements. The agreement remains non-binding at this stage and serves as a framework for further negotiations between both parties.
Encorp chief executive officer Ahmad Harzimi Mohd Taib said the company is committed to delivering modern, well-planned and quality residential environments that enhance the well-being of Felda employees.
The proposed collaboration further strengthens the long-standing relationship between Encorp and Felda. Felda remains Encorp's largest shareholder through Felda Investment Corporation Sdn Bhd, which holds a 62.3% stake in the company. Due to this shareholding relationship, two Encorp directors nominated by Felda Investment Corporation are considered interested parties in relation to the MOU.
Management noted that the collaboration could potentially create additional opportunities for Encorp to secure future public sector development and construction projects.
The latest initiative follows Encorp's previous work for Felda, including the successful completion of Phase 1 of the Lamanda Chuping development in Perlis in 2024.
At the midday trading break on Friday, Encorp shares rose 0.5 sen, or 4.4%, to 12 sen, valuing the property developer and construction company at approximately RM38 million.
Key Takeaways
Encorp has signed a non-binding MOU with Felda for a potential staff housing construction project.
The company could be formally appointed as contractor once definitive agreements and a letter of acceptance are executed.
Felda is Encorp's largest shareholder with a 62.3% stake via Felda Investment Corporation.
The collaboration may strengthen Encorp's position in securing future government and public sector projects.
Encorp previously completed Phase 1 of the Lamanda Chuping development in Perlis for Felda.
Encorp's share price gained 4.4% following the announcement, reflecting positive market sentiment toward the potential project.
Malaysia