This news is positive for Coastal

Company Name : COASTAL CONTRACTS BHD
Stock Name : COASTAL
Date Announced : 28/01/2010



Type : Announcement
Subject : Coastal Contracts Bhd (“Coastal” or “Company”) – Memorandum of Understanding (“MoU”) between Ramunia Fabricators Sdn Bhd (“RFSB”) and Pleasant Engineering Sdn Bhd (“PESB”)



Contents : The Board of Directors of Coastal is pleased to announce that its wholly-owned subsidiary, PESB, has on 28 January 2010 signed a MoU with RFSB for the proposed collaboration to undertake the tendering, bidding and fabrication in relation to any contract involving the engineering, procurement and construction of any topsides, jackets or any structures for the oil and gas industry.

RFSB is a wholly-owned subsidiary of Ramunia Holdings Bhd (“Ramunia”), and is involved in civil, structural and building maintenance, mechanical engineering and maintenance, as well as offshore facilities and tanks/tanks farm construction.

PESB owns a yard with facilities to carry out fabrication and engineering works at Seguntor, Sandakan, Sabah, measuring approximately 52.37 acres in aggregate.

The MoU shall take effect on the date of its execution and shall continue to be of effect until the occurrence of any of the following, whichever is the earlier:

1. the execution of the appropriate legally binding agreement or agreements regarding the parties’ intended collaboration; or

2. the expiry of a period of 2 years from the date of the MoU’s execution or such later period as mutually agreed between the parties; or

3. the MoU’s early termination by either party by giving 2 months’ written notice of termination.

Except for Lembaga Tabung Haji which is the common substantial shareholder of both Ramunia and Coastal, none of the directors and/or substantial shareholders of the Company and persons connected with them has any interest, direct or indirect, in the above transaction.

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/LsvAllByID/0B091A5A5420EC44482576B900324BF2?OpenDocument