: M-Mode Bhd has proposed to diversify into the construction business to secure additional sources of income and enhance its future prospects.
The proposed diversification would involve undertaking the completion of the remaining construction for the H2O residential project in Ara Damansara, Petaling Jaya, Selangor, for a contract sum of RM180 million, it said.
The project comprises three blocks of 15-storey serviced apartments, one block of 15-storey small office, home office and one-storey clubhouse on top of a seven-storey podium.
In a filing to Bursa Malaysia on Friday, M-Mode said the group would divert at least 25 percent of its net assets towards the construction business.
"The board of directors expects the construction business to potentially contribute at least 25 percent to the group's net profit.
"In this regard, the board proposes to seek shareholders' approval for the proposed diversification at an extraordinary general meeting to be convened," it said, adding the diversification would contribute positively to the group's future earnings and improve its financial position.
M-Mode is currently involved in investment holding, provision of mobile contents, data application services, production and distribution of magazines, as well as acting as a media advertisement agent. -- Bernama