Pembinaan Mitrajaya, Medini Development terminates contract worth RM159mil


KUALA LUMPUR (June 1): Mitrajaya Holdings Bhd’s (MHB) wholly-owned unit, Pembinaan Mitrajaya Sdn Bhd (PMJ) and Medini Development Sdn Bhd (MDSB) have mutually agreed to terminate a contract worth RM159.38 million.

In a filing with Bursa Malaysia yesterday, MHB said the termination of the contract for superstructure works on an office tower development in Mukim Pulai, Johor Bahru would reduce the company’s order book by RM112.2 million.

"Part of the works for this contract has started and has been recognised in the financial statement of the group for the year ended Dec 31, 2018," it said.

According to the filing, MDSB had informed PMJ that after careful consideration, the company had decided to put the development of the project on hold until market condition stabilises.

"The group will not be able to recognise the potential earnings in the financial year ending Dec 31, 2019 upon the mutual termination," it said, adding that there would be no other financial impact.