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 announcements of 17 April 2014 and 26 August 2020. Unless otherwise stated, the abbreviations used in this announcement shall have the same meaning as set out in the earlier announcements.

MMC Corporation Berhad (“MMC” or “Company”) wishes to announce that SMAJV had, on 25 September 2020, been informed by its solicitors that PAAB had served its Response to SMAJV’s Arbitration Notice dated 26 August 2020 (“Response to Arbitration Notice”).

Under the Response to Arbitration Notice, PAAB counterclaims a sum of RM63,030,664.84 against SMAJV for alleged breaches relating to the 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 (collectively referred to as “PAAB’s Counterclaim”).

PAAB’s Counterclaim 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. PAAB’s Counterclaim is also not expected to have material operational impact on MMC Group.

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

This announcement is dated 28 September 2020.






Announcement Info

Company Name MMC CORPORATION BERHAD
Stock Name MMCCORP
Date Announced 28 Sep 2020
Category General Announcement for PLC
Reference Number GA1-28092020-00029