Tadmax down 19% despite clarifying news of Pulau Indah power plant cancellation

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KUALA LUMPUR (Feb 19): Shares of Tadmax Resources Bhd fell as much as 5.5 sen or 19.3% to 23 sen as it resumed trading today, despite the company's clarification that it has not received any notifications of termination of the RM3.5 billion power plant project in Pulau Indah that was awarded through direct negotiation by the previous government.

At 12.23pm, the counter pared some losses, but was still down three sen or 10.5% at 25.5 sen with 10.84 million shares traded, giving it a market capitalisation of RM199.86 million.

The Edge Malaysia, in its Feb 18-24 edition, reported that Putrajaya has pulled the plug on the 1,200mw combined-cycle gas turbine power plant, quoting sources.

Tadmax halted its share trade on Monday (Jan 18), and responded on Bursa Malaysia that it has not received any termination notifications of the project.

Tadmax, which owns 40% in the project, has roped in South Korea's state-owned utility Korea Electric Power Corp (KEPCO) as its technical partner with 25% stake, and Selangor state-linked Worldwide Holdings Bhd as its strategic partner, with the remaining 35% stake.