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Soilbuild Construction bags S$48.3m contract from chairman's company

MAINBOARD-LISTED Soilbuild Construction Group has won a contract - to build an apartment block in the Novena area - from a company owned by executive chairman Lim Chap Huat.

The contract, which is worth S$48.3 million, falls under the interested-person transaction mandate renewed by shareholders at the annual general meeting in April 2019, the board disclosed on Monday.

That's because SB (Kemaman) Development, the project owner for the development of a 28-storey block at 3, Jalan Kemaman, is wholly owned by a company where Mr Lim is the sole shareholder and Soilbuild non-executive director Lim Cheng Hwa also sits on the board.

Besides the duo, none of Soilbuild's directors or controlling shareholders has any interest, direct or indirect, in the project outside of their shareholding in the company, the board added.

It also declared that the latest contract award is not expected to materially affect the group's consolidated net tangible assets and earnings per share for the year to Dec 31.