KUALA LUMPUR (Aug 18): After several delays in finalising an official contract, the exploratory tie-up between Salcon Bhd and Benalec Holdings Bhd for the establishment of water supply and sewerage treatment infrastructure in the Tanjung Piai Integrated Petroleum and Maritime Industrial Park in Johor has been called off.

In a bourse filing today, Salcon said the memorandum of understanding (MoU) that it inked with Benalec on Aug 27 last year to explore the avenues for the setting up of the infrastructure has lapsed, and it has no intention of extending the validity of the MoU.

Under the terms of the MoU, the parties were to craft a definitive contract within six months from the date of the MoU — or any such extended period as may be agreed — to establish the said infrastructure.

In a separate filing, Benalec echoed that neither party has the intention of extending the MoU.

Furthermore, it shared that it has recently appointed a water infrastructure consultant and is in the midst of finalising the water infrastructure design for the maritime industrial park.

It added that once the design is finalised and approvals have been obtained from the relevant authorities, the group will then engage engineering companies to commence construction works.

"There is no financial impact and obligation on the company," Benalec said of the lapsed MoU.

Shares in Salcon closed down one sen or 1.56% at 63 sen today, valuing it at RM409.33 million.

Benalec's shares, meanwhile, settled one sen or 2.27% lower at 43 sen, giving it a market value of RM343.62 million.