Kumpulan Jetson dips 1.45% after RM919.32m contract rescinded

KUALA LUMPUR (July 5): Shares of Kumpulan Jetson Bhd fell 1.45% in early trade today after it said MCC Overseas (M) Sdn Bhd had withdrawn a RM919.32 million contract with its wholly-owned subsidiary Jetson Construction Sdn Bhd (JCSB) on alleged misrepresentation or non-disclosure of a certain matter.

At 9.12am, Jetson fel 0.5 sen to 34 sen with 1.12 million shares traded.

Jetson yesterday said JCSB had on Monday received a letter from MCC on its decision to rescind the award to JCSB to undertake subcontract works for a mixed commercial project in Jalan Conlay here, citing there was an alleged misrepresentation or non-disclosure that one of the substantial shareholders of Jetson is a director of a third party consultant to the employer of the project.

Jetson said, however, that JCSB has denied any misrepresentation or non-disclosure or wrongdoing giving rise to such rescission and that it was not given the opportunity to respond prior to the purported unilateral rescission.

It is seeking legal advice on this matter and will take appropriate action in due course. — theedgemarkets.com

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