ML Global terminates RM76m construction contract in Cameron Highlands

KUALA LUMPUR (Dec 8): ML Global Bhd and a project owner have mutually terminated a RM76.44 million contract to build service apartments, hotel and office in Cameron Highlands, lowering the group’s order book to RM2.3 billion.

In a filing with Bursa Malaysia today, ML Global said the contract was awarded to its wholly-owned subsidiary MITC Engineering Sdn Bhd in February 2016 by Pelangi Kolonel Sdn Bhd.

ML Global said the termination was due to the request from Pelangi Kolonel to temporarily stop construction work since February this year as the latter decided to delay the development.

“Both parties agreed that each party shall not make any claim against the other party due to the termination of the letter of award, except for the settlement of balance outstanding amount due and payable by Pelangi Kolonel to MITC of approximately RM1.54 million for the progress of design works done,” the filing read.

ML Global gained two sen or 1.16% to close at a seven-year-high of RM1.74 today, giving it a market capitalisation of RM690.62 million.

Year-to-date, the counter has more than doubled from 83 sen on Dec 29 last year. — theedgemarkets.com

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