OTHERS TERMINATION OF APPOINTMENT AS THE PROJECT DELIVERY PARTNER FOR THE IMPLEMENTATION OF PHASE 1 OF THE PAN BORNEO HIGHWAY (SABAH)
|MMC CORPORATION BERHAD|
TERMINATION OF APPOINTMENT AS THE PROJECT DELIVERY PARTNER FOR THE IMPLEMENTATION OF PHASE 1 OF THE PAN BORNEO HIGHWAY (SABAH)
We refer to our announcement on 11 April 2016 and the press release by the Ministry of Works dated 22 April 2019.
MMC Corporation Berhad ("MMC" or "Company") wishes to announce that Borneo Highway PDP Sdn Bhd ("BHP") had on 22 April 2019 received notification from the Government of Malaysia terminating the Project Delivery Partner Agreement of 11 April 2016 and the Supplemental Project Delivery Partner Agreement of 19 January 2018 entered into by BHP with the Government of Malaysia and the State Government of Sabah (“PDP Agreement”). The termination is on the ground of national interest and is to take effect on the expiry of five (5) months from 22 April 2019.
BHP is 40% owned by UEM MMC Joint Venture Sdn Bhd (“UMJV”), which in turn is a jointly-controlled entity of MMC. MMC’s effective interest in BHP, via UMJV, is 20%.
The termination is not expected to have any significant effect on the earnings of the MMC Group for the financial year ending 31 December 2019.
MMC will make further announcements if there are any material developments on the above matter.
This announcement is dated 29 April 2019.
|Company Name||MMC CORPORATION BERHAD|
|Date Announced||29 Apr 2019|
|Category||General Announcement for PLC|