TNB drops suit against Gamuda after payment of RM91m

-A +A

KUALA LUMPUR (Aug 20): Gamuda Bhd said Tenaga Nasional Bhd (TNB) has withdrawn a legal suit against the group, following the full settlement of a sum totalling RM91.1 million.

“TNB’s solicitors have withdrawn all matters pertaining to the TNB suit with no order as to costs, and without liberty to file afresh,” Gamuda said in a filing to the stock exchange today.

The RM91.1 million constitutes full and final settlement of the dispute between Gamuda’s 80%-owned unit Gamuda Water Sdn Bhd and TNB, the group said.

TNB has sued Gamuda Water in March last year, for failing to pay its electricity bills.

Gamuda said the suit will not have any significant financial or operational impact on the group for the financial year ending July 31, 2020 (FY20), as the outstanding electricity bills have been fully provided, as and when they were incurred.

Shares of Gamuda closed 10 sen or 2.74% higher at RM3.75 today, valuing the group at RM9.27 billion.

TNB shares were up two sen or 0.15% at RM13.70, giving the group a market capitalisation of RM77.91 billion.

Read also:
TNB’s suit against Gamuda adjourned pending settlement negotiations
TNB claims RM39.5m electricity bills from Gamuda