E&O, OCK in 49:51 JV for digital infrastructure on Andaman Island

Eastern & Oriental Bhd (E&O) and OCK Group Bhd have agreed to form a joint venture to develop and operate telecommunications and digital infrastructure on E&O's 760-acre Andaman Island in Penang. OCK's unit will hold 51% and E&O's subsidiary 49%, with initial share subscriptions totalling RM2 millio

PETALING JAYA (Oct 19): Eastern & Oriental Bhd (E&O) and telecommunications infrastructure provider OCK Group Bhd have agreed to establish a joint venture to develop and operate telecommunications and related digital infrastructure on E&O's 760-acre Andaman Island development in Penang.

Under a shareholders' agreement announced on Oct 16, OCK's wholly-owned subsidiary OCK Setia Engineering Sdn Bhd will hold 51% of the proposed joint venture company, while E&O's indirect wholly-owned subsidiary Tinggi Murni Sdn Bhd will hold the remaining 49%. According to OCK's Bursa Malaysia filing, OCK Setia Engineering will subscribe for 1.02 million shares for RM1.02 million, while Tinggi Murni will subscribe for 980,000 shares for RM980,000, at RM1 per share.

The proposed joint venture company will serve as a special-purpose vehicle to develop and operate telecommunications and related digital infrastructure across the first two phases of Andaman Island. The planned infrastructure includes telecommunications towers and poles, smart poles, fibre-optic and broadband networks, and in-building connectivity systems.

E&O said in a statement on Oct 16 that the collaboration would integrate digital connectivity into Andaman Island's long-term development masterplan, alongside its residential, commercial, hospitality and lifestyle components. The infrastructure is intended to support telecommunications operators and internet service providers in delivering connectivity across the island.

E&O managing director Kok Tuck Cheong said infrastructure planning was an important consideration in developing Andaman Island as an integrated waterfront destination. "For a development of Andaman Island's scale and ambition, infrastructure cannot be an afterthought. It must be considered from the outset as part of the wider masterplanning process," he said. Kok said the development extended beyond individual properties to encompass an integrated waterfront destination where people could live, work and connect, requiring consideration of the systems supporting everyday life, including accessibility, utilities, digital connectivity and infrastructure for future growth.

OCK Group managing director Datuk Wira Sam Ooi Chin Khoon said the joint venture would integrate telecommunications and digital infrastructure into the planning of the property development. "By collaborating with E&O, we see an opportunity to move beyond conventional, standalone network deployments towards a more comprehensive connectivity ecosystem that is planned in tandem with the development of a destination," he said. OCK plans to bring together telecommunications towers, in-building coverage solutions and fibre-to-the-home infrastructure under a unified platform on Andaman Island.

Sam said the approach was intended to help telecommunications operators expand their network presence more efficiently while supporting the connectivity requirements of residents, businesses and the wider community. He added that the collaboration could provide a scalable model for incorporating digital infrastructure into future property developments. Separately, OCK said the joint venture could provide recurring revenue opportunities from telecommunications operators, internet service providers and broadband service providers operating on Andaman Island.

Funding for the venture may come from bank borrowings, shareholder loans, additional equity subscriptions or other mutually agreed financing arrangements. OCK said the joint venture was not expected to have a material effect on its net assets per share, earnings or gearing for the financial year ending June 30, 2027, although it expected the venture to contribute positively to future profitability. The venture's implementation will also require the relevant regulatory approvals, licences, permits and consents, where applicable.

Located off Penang island's northeastern coast, Andaman Island forms part of E&O's continuing waterfront development in Penang.