Business

Published: Friday October 30, 2009 MYT 3:02:00 PM

Lityan eyes high speed broadband project


KUALA LUMPUR: Lityan Holdings Bhd aims to secure a chunk of the high speed broadband (HSBB) project by Telekom Malaysia,its group managing director and chief executive officer, Nor Badli Mohd Alias said.

The information communications technology (ICT) company and its partner Huawei, the leading global telecommunications solutions provider based in China, have submitted a bid.

"We will know the result within the next 12 months. We hope to get a significant portion of the project," he told reporters after the company's re-quotation of shares on Bursa Malaysia here on Friday.

The first phase of the RM11.3 billion HSBB project covers 1.3 million premises in the inner Klang Valley and industrial areas of every state.

As at the end of September, Telekom Malaysia had awarded HSBB-related contract work worth RM1.186 billion, involving more than 200 local vendors.

Meanwhile, Nor Badli said the company was also eyeing several government ICT projects which could cost a minimum US$1 million (US$1.00 = RM3.41) in the Middle East, especially in Saudi Arabia.

"We are now negotiating with the authorities and will announce the outcome by the end of the first half of next year," he added.

He also disclosed that the company had RM40 million in cash and zero gearing.

Lityan, which is trading again on the Main Market of Bursa Malaysia, has an outstanding order book of roughly RM200 million and this is expected to last till the end of 2011.

Lityan's counter was last traded on June 15, 2006, prior to the trading suspension and it being classified a PN-17 company in May 2005.

The company is now a subsidiary of Lembaga Tabung Haji (LTH) which has a 65 per cent equity interest.

At the opening bell, Lityan's price stood at RM1.79, a premium of 79 sen over its offer price of RM1.00.

Nor Badli said Lityan's comeback to the stock market was a very significant milestone as it is one of the fortunate PN-17 companies to done so.

He said the company would continue to focus on improving the efficiency of its core businesses in view of the firmer financial footing.

"We will start to embark on our re-branding exercise to take on the Tabung Haji identity soon," he said. - BERNAMA


LITYAN : [Stock Watch] [News]

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