KUALA LUMPUR (Feb 20): Pesona Metro Holdings Bhd announced yesterday it has secured a new contract worth RM408.8 million from Malaysian Resources Corp Bhd (MRCB) for superstructure works for a mixed development in Seksyen 98, here.

On the same day, it said it has mutually terminated another project worth RM371.42 million in relation to the civil works for Section 6 of the Kapar Interchange to Asam Jawa Interchange of the privatisation of the West Coast Expressway.

The two announcements were made in separate filings to Bursa Malaysia.

In the first, Pesona Metro said its wholly-owned subsidiary Pesona Metro Sdn Bhd has received a letter of acceptance from MRCB’s wholly-owned subsidiary MRCB Builders Sdn Bhd to complete construction works on three blocks of apartments comprising 734 units, together with 10 floors of parking (including basement) and six units of retail space.

The project will be for a duration of 30.5 months, starting from Feb 18, said Pesona Metro. Expected to contribute positively to its earnings and enhance its net assets during the duration of the project, Pesona Metro said it will fund the project via internal funds.

In the second announcement, it said its Pembinaan Kaleigh-Pesona Metro joint venture (JV) had, yesterday, inked a mutual termination agreement for the project with Konsortium Kontraktor Sdn Bhd-Pembinaan Kaliegh JV, the main contractor that awarded the project.

Its board of directors said the move was in the best interest of the group after considering the potential impact to the earnings of the group “should the delay of the project persists”.

The project was first secured in 2016 and was meant to be completed in thirty months.

“The parties have agreed [to] the terms of settlement for a sum of RM7,167,591.92 payable by the main contractor to the JV in respect of all claims and counterclaims and the full and final payment of all and any other rights and obligations.

“The main contractor shall gain access to and take full site possession on Feb 15, 2019 from the JV,” Pesona Metro said, adding there is no material impact to its earnings and net assets based on the agreed settlement sum.

Pesona Metro shares closed 1.5 sen or 6.82% higher at 23.5 sen yesterday, giving it a market capitalisation of RM163.31 million. Over the past year, the counter has fallen about 37% from 37 sen.

This article first appeared in The Edge Financial Daily, on Feb 20, 2019.

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