Ikhmas Jaya's RM57.94m contract terminated with 81% completion

KUALA LUMPUR (Jan 5): Piling and engineering specialist Ikhmas Jaya Group Bhd said yesterday, a RM57.94 million contract has been terminated by TTDI KL Metropolis Sdn Bhd with no reason given.

Ikhmas Jaya said its wholly-owned subsidiary Ikhmas Jaya Sdn Bhd (IJSB) has received a letter from TTDI KL Metropolis terminating IJSB’s contract for earthworks, piling and substructure works for a proposed 59-storey development at Mukim Batu here.

In a filing with Bursa Malaysia yesterday, Ikhmas Jaya said the project, clinched on Nov 28, 2016, has been 81% completed and the balance of work to be carried out is worth RM11 million.

The expected date of completion for the project was Feb 17, 2018.

"Both parties mutually agreed on the determination with good intention that IJSB shall demobilise within 14 days and TTDI shall finalise and settle the final account soonest possible," it added.

Ikhmas Jaya also said the termination is not expected to have any significant impact on the group's earnings for the financial year ended Dec 31, 2018.

The group's current order book stands at RM800 million.

Ikhmas Jaya shares rose 2.5 sen to close at 13 sen yesterday, giving it a market capitalisation of RM70.9 million.  — theedgemarkets.com

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