Kumpulan Jetson's RM919 mil building subcontract gets rescinded

KUALA LUMPUR (July 4): Kumpulan Jetson Bhd has received a letter from MCC Overseas (M) Sdn Bhd wherein the latter purported to unilaterally rescind the award of a RM919.3 million subcontract to undertake main building works for a mixed commercial project on Jalan Conlay.

Last Thursday, Kumpulan Jetson's wholly-owned unit Jetson Construction Sdn Bhd (JCSB) had accepted the subcontract job from MCC.

In a filing to Bursa Malaysia today, it said the cancellation of the subcontract was on the basis that there was an alleged misrepresentation or non-disclosure of a certain matter, namely that one of the company's substantial shareholders is a director of a third party consultant to the project's employer.

"The company wishes to inform that MCC has not given an opportunity to JCSB to respond prior to the purported unilateral rescission and JCSB denies any misrepresentation or non-disclosure or wrongdoing giving rise to such rescission," said Kumpulan Jetson.

"JCSB believes that MCC has repudiated and wrongfully rescinded the said letter of award/subcontract," it added.

The company said JCSB is seeking legal advice on this matter and will take appropriate action in due course.

At 2.43pm, Kumpulan Jetson shares were down 8.5 sen or 19.8% to 34.5 sen with 9.09 million shares traded for a market capitalisation of RM84.83 million.

Over the past 12 months, shares in Kumpulan Jetson surged 82.61% from 23 sen. — theedgemarkets.com

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