KUALA LUMPUR (Aug 17): Sime Darby Bhd’s 36.63%-owned joint venture in China said it is no longer required to pay additional interests of 187 million yuan (RM122.33 million) to CCCC Tianjin Dredging Co Ltd over the late payment of an instalment sum.

In a filing today with Bursa Malaysia, Sime Darby said Weifang Port Services Co Ltd (WPS) was issued with a case closing notice by the Qingdao Maritime Court, after CCCC Tianjin had confirmed that the joint-venture company had fulfilled its obligations under two settlement agreements.

To recap, WPS had awarded a dredging contract to CCCC Tianjin to build a 35,000 deadweight tonne (DWT) main channel in Weifang Port, Shandong for 1.17 billion yuan (RM765.44 million).

However, WPS only paid 459 million yuan of the total and did not settle the outstanding sum of 711 million yuan (RM465.15 million) until the court ordered it to pay the amount plus interest and legal costs, amounting to 728 million yuan (RM476.27 million) in three instalments, after CCCC Tianjin filed a lawsuit against it.

CCCC Tianjin imposed the interest of 187 million yuan (RM122.33 million) after WPS was late in its final instalment payment due on Dec 10, 2020. The amount was only paid on April 15, 2021.

Sime Darby’s share price closed eight sen or 3.79% higher at RM2.19 today, valuing the group at RM14.9 billion.