KUALA LUMPUR (Nov 4): Shares in integrated oil and gas services provider Uzma Bhd fell as much as 8.5 sen or 8.3% to 93.5 sen this morning, after the company announced last week it is taking South Korea's Khan Co Ltd (Khan) and Kong Offshore Malaysia Sdn Bhd (Kong) to court.

At 10.40am, the stock was traded at 94.5 sen, while a total of 20.85 million shares exchanged hands, making Uzma one of Bursa Malaysia's most active counters this morning.

Uzma shares had nearly doubled when it climbed from 58 sen in August, to an 11-month high of RM1.11 on Oct 24, before the uptrend reversed last week.

On Oct 30, Uzma said its wholly-owned unit is taking legal action against Khan and Kong for overpayment of works worth RM63.14 million.

Uzma said Uzma Engineering Sdn Bhd (UESB), Khan, and Kong were involved in a construction project known as the KNPG-B Topside Ph II, Kinabalu Non-Associated Gas (NAG) Development Project and disputes have arisen therein.

However, an analyst who declined to be named said there was "nothing wrong" with the legal suit as its outcome will either be positive or neutral to Uzma.

"There is nothing wrong with the legal case. The project was given back to Uzma, and Uzma continued to deliver the project with expenses already booked.

"Should Uzma win the case, there will be a write-back that will reflect positively on their cash flow, but if otherwise, there will be no impact to Uzma as no impairment is needed," the analyst told theedgemarkets.com today when contacted.

Uzma is seeking to claim against Khan and/or Kong for the total sum of RM63.14 million and interest as well as an order for payment by Khan to UESB of all sums found to be overpaid by UESB to Khan and/or Kong in respect of the works under the project upon the determination of the final sum of such overpayment during trial of this action.

Against Kong, Uzma is seeking for damages to be assessed in relation to the defamation of UESB.

Related story: Uzma sues two companies to recover overpayment of RM63m