KUALA LUMPUR: Benalec Holdings Bhd’s wholly-owned subsidiary Benalec Sdn Bhd (BSB) has received a writ of summons and statement of claim on April 30, filed by Sentosacove Sdn Bhd, due to an alleged breach of agreement relating to marine reclamation works in Melaka.
In a filing with Bursa Malaysia yesterday, Benalec (fundamental: 1.15; valuation: 0.6) said the plaintiff is alleging that BSB had breached its contractual and implied duties under the reclamation agreement, which was entered into by the parties on Sept 10, 2010.
Under the agreement, BSB was appointed as a contractor to carry out marine reclamation works to reclaim a total area of 720 acres (291.4ha) in
Daerah Klebang, Melaka.
Benalec said it is rigorously contesting the claims and has instructed its solicitors to defend the case as well as to file counterclaims as necessary and justified. “The company is of the view that the plaintiff’s claims are without merit and the company has a valid and strong defence against the plaintiff’s claims,” said Benalec in the announcement to the stock exchange.
Benalec noted that it was unable to ascertain the financial impact of the suit, but will make further announcements on the development of the matter as and when necessary. Benalec’s share price has lost some ground recently after staging a rebound, hitting a high of 89.5 sen in early February from the low of 53.3 sen in mid-December.
This article first appeared in The Edge Financial Daily, on May 8, 2015.