Zelan faces RM16m arbitration claim by Hitachi over sub-contract in UAE

-A +A

KUALA LUMPUR (April  17): Zelan Bhd said its wholly-owned subsidiary is facing a 15.22 million dirham (RM16.12 million) arbitration claim by Hitachi Ltd over a deal in the United Arab Emirates.

Zelan Holdings (M) Sdn Bhd is facing the action, following disputes relating to a sub-contract, signed in 2012 for the supply and installation of a water cooled chiller package for the Meena Plaza mixed use development project in Abu Dhabi.

“Zelan Holdings shall take all necessary steps to defend or safeguard Zelan Holdings’ interests in the arbitration proceedings, including but not limited to seeking legal advice on the merits of the claims by Hitachi,” Zelan said in a filing with Bursa Malaysia.

Zelan’s share price gained 0.5 sen or 5% to 10.5 sen today, giving it a market capitalisation of RM88.71 million.