KUALA LUMPUR (May 31): Mitrajaya Holdings Bhd’s wholly-owned subsidiary Pembinaan Mitrajaya Sdn Bhd (PMJ) has agreed with Medini Development Sdn Bhd (MDSB) to mutually terminated a contract to undertake a superstructure works for an office tower development at Bandar Medini, Iskandar Malaysia, Johor, with a contract value of RM159.39 million.

The contract was awarded by MDSB to PMJ on Dec 21, 2016. The project was initially scheduled to be completed on Jan 16 this year.

Mitrajaya told Bursa Malaysia in a stock exchange filing this evening that the result of this mutual termination came after MDSB had given careful consideration and decided to put on hold, the development of the project until market conditions stabilise.

“The mutual termination will result in the Mitrajaya’s construction division outstanding book order to be reduced by RM112.2 million, as part of the works for this contract has started and has been recognised in the financial statement of the group for the year ended Dec 31, 2018,” Mitrajaya said. 

However, Mitrajaya would not be able to recognise the potential earnings in its financial year ending Dec 31, 2019 (FY19), upon mutual termination, the filing added.

Shares of Mitrajaya finished unchanged at 34 sen today, which valued it at a market capitalisation of RM304.69 million. It saw some 844,300 shares traded.