Friday 29 Mar 2024
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KUALA LUMPUR (Nov 29): TRC Synergy Bhd said its late announcement to Bursa Malaysia on the termination notice from MMC Gamuda KVMRT (PDP SSP) Sdn Bhd for a RM74.39 million contract related to works on the new Sg Buloh-Serdang-Putrajaya Mass Rapid Transit Line (MRT Line 2) was due to a misunderstanding by its management on the termination.

In a filing with Bursa Malaysia today, TRC said this was because the reason for the termination was not due to default in contract by the company, but rather due to a prerogative right of MMC Gamuda as stipulated in the contract.

"Furthermore, under the contract, TRC will also be entitled to compensations due to the termination," it added.

TRC said the company’s board of directors, in its meeting on Monday, however agreed to announce the termination after due deliberation and consideration. 

Yesterday, TRC said it had received a notice of termination for works to relocate a craft museum, Karyaneka office and the National Heritage Department office to Bangunan Sultan Abdul Samad as part of the MRT Line 2 project.

"The management was also of the opinion that the contract value of the project amounting to RM74 million is not too significant against the company's total contract book order of RM2.6 billion. Therefore, the termination would not have a material impact on the earnings per share and net asset value of the company," said TRC.

Following the termination, TRC said it has initiated a series of negotiations and discussions with MMC Gamuda to ascertain the quantum of damages and cost incurred and other consequences to the termination.

TRC shares closed 2 sen or 4.82% lower at 39.5 sen today, bringing a market capitalisation of RM189.8 million.

 

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