Salcon-MMC-Ahmad Zaki JV initiates RM85m arbitration proceedings against Pengurusan Aset Air

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KUALA LUMPUR (Aug 26): A company owned by Salcon Bhd, MMC Corp Bhd and Ahmad Zaki Resources Bhd has commenced arbitration proceedings against Pengurusan Aset Air Bhd (PAAB), seeking a sum of RM85.02 million. 

Salcon MMCB AZSB JV Sdn Bhd (SMAJV) is claiming the sum for work performed by the company in respect of the development of the Langat 2 water treatment plant and water reticulation system in Selangor and Kuala Lumpur, MMC said in a filing with Bursa Malaysia.  

The claims include loss and expense claims, claims for works done under variation orders, release of retention sum and unilateral deduction by PAAB on payments due to SMAJV as at the date of the arbitration notice.  

SMAJV, owned by Salcon, MMC and Ahmad Zaki on a 36:34:30 basis, was awarded the RM993.9 million Langat 2 water treatment plant and water reticulation system contract in 2014. 

The contract, for a duration of 36 months, entails the construction and completion of phase one of the Langat 2 water-treatment plant and reticulation system in Selangor and Kuala Lumpur. 

Meanwhile, in a separate filing, MMC said the High Court ruled in the group’s favour in relation to the case between its indirect subsidiary Kontena Nasional Bhd (KNB) and Hood Osman.  

The court awarded a sum of RM6.85 million to KNB, after it found Hood had breached his legal and fiduciary duties to KNB.  

MMC Corp’s share price closed one sen or 1.35% lower at 73 sen today, valuing the group at RM2.23 billion.

Salcon’s share price also fell one sen or 4.76% to close at 22 sen, giving it a market capitalisation of RM182 million. 

Ahmad Zaki Resources’ shares price closed up 0.5 sen or 2.27% at 22.5sen, valuing the company at RM134.20 million.  

Edited by S Kanagaraju