KUALA LUMPUR (March 20): Malakoff Corp Bhd (MCB) has appointed international arbitration lawyers in Paris and Kuala Lumpur to advise it and challenge claims in relation to the termination of a water purchase agreement (WPA) in Algeria.

In a filing to the exchange today, MCB said its associate company Almiyah Attilemcania SPA (AAS) and Tlemcen Desalination Investment Company SAS (TDIC) had received a notice of termination dated Nov 12, 2018 for an alleged breach of the WPA.

MCB said the arbitration under the International Chamber of Commerce International Court of Arbitration is filed by Algerian Energy Company SPA (AEC) against TDIC, Hyflux Ltd and itself.

It said AAS is a joint stock company incorporated in Algeria for the design, installation and operation of a water desalination plant.

It said the shareholders of AAS are TDIC and AEC, holding 51% and 49% of the shares respectively.

Meanwhile, the shareholders of TDIC are Malakoff AlDjzair Desal Sdn Bhd (MADSB) and Menaspring Utility (S) Pte Ltd, holding 70% and 30% of the shares respectively.

MADSB is wholly owned by Malakoff International Ltd, which in turn is a wholly-owned subsidiary of MCB.

To recap, MCB had on Nov 19 last year said AAS and TDIC had received a notice of termination of the WPA dated Nov 12.

Among AEC's claims are for an order for TDIC to transfer its shares in AAS to the former at the price of 1 Algerian dinar as well as for indemnity estimated at €80 million.

AEC is also seeking a guarantee for the payment or reimbursement of a 3.93 million Algerian dinar fine.

At the noon market break today, MCB fell 1.07% or 1 sen to 92.5 sen with 166,400 shares traded.