MATERIAL LITIGATION NOTICE TO COMMENCE ARBITRATION PROCEEDINGS BY SALCON MMCB AZSB JV SDN. BHD. ("SMAJV") AGAINST PENGURUSAN ASET AIR BERHAD ("PAAB")

MMC CORPORATION BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
NOTICE TO COMMENCE ARBITRATION PROCEEDINGS BY SALCON MMCB AZSB JV SDN. BHD.  ("SMAJV") AGAINST PENGURUSAN ASET AIR BERHAD ("PAAB")

We refer to our announcement of 17 April 2014. Unless otherwise stated, the abbreviations used in this announcement shall have the same meaning as set out in the announcement of 17 April 2014.

MMC Corporation Berhad (“MMC” or “Company”) wishes to inform that SMAJV had on 26 August 2020 issued a notice to commence arbitration proceedings (“Arbitration Notice”) against PAAB.

Under the Arbitration Notice, SMAJV claims a sum of RM85,912,482.14 against PAAB for, among others, loss and expense claims, claims for works done under variation orders, release of retention sum and unilateral deduction by PAAB on payments due to SMAJV as at the date of the Arbitration Notice, subject to further quantification of further losses suffered by SMAJV (collectively referred to as “Claims”). The Claims relate to works performed by SMAJV in respect of the development of the Langat 2 Water Treatment Plant and Water Reticulation System in Selangor Darul Ehsan/Wilayah Persekutuan Kuala Lumpur.

The arbitration proceedings commenced by SMAJV is not expected to have any material effect on the earnings, net assets and gearing of MMC Group for the financial year ending 31 December 2020. The arbitration proceedings is also not expected to have material operational impact on MMC Group.

None of the directors or major shareholders of MMC or persons connected with them has any interest, direct or indirect, in the arbitration proceedings.

MMC will make further announcements if there are any material developments on the above matter.

This announcement is dated 26 August 2020.






Announcement Info

Company Name MMC CORPORATION BERHAD
Stock Name MMCCORP
Date Announced 26 Aug 2020
Category General Announcement for PLC
Reference Number GA1-26082020-00024