Bas Rakyat to operate public bus service in Manjong

Gunung Capital Bhd’s indirect subsidiary, Bas Rakyat Sdn Bhd (BRSB), has secured a contract from the Perak government to operate a public bus service in Manjung, with 18 units of new buses covering seven routes identified by the state.

The total contract value is RM4.32 million over the first five years, Gunung said in filing to Bursa Malaysia today.

It said the bus service would be in operation for seven years, starting from March 2011 to February 2018.

“There will be no payments from the state government for the last two years,” it noted.

After the seventh year, BRSB should transfer ownership of the buses to the state government in a functional condition.

The contract is not expected to have any material effect on the earnings per share, net assets per share and gearing of Gunung and its subsidiaries, and would have no effect on the share capital and shareholdings of substantial shareholders of Gunung.

BRSB is 75:25 per cent owned by GBP Corporation Sdn Bhd and the state government of Perak. Gunung has 51 per cent stake in GBP.