KUALA LUMPUR (June 27): MMC Corporation Bhd and its partner in the Klang Valley Mass Rapid Transit (KVMRT) project are being sued for over RM300 million for an alleged breach of contract relating to a land acquisition for the project.

In a filing with Bursa Malaysia today, MMC Corp said the suit against its jointly controlled entity, MMC Gamuda KVMRT (PDP) Sdn Bhd, was filed by Accolade Land Sdn Bhd

"The suit is premised on an alleged breach of an alleged contract between Accolade and MRT Corp relating to the acquisition of land belonging to Accolade by MRT Corp for the KVMRT project," it said.

Accolade is claiming damages in the sum of RM303.53 million with interest and costs, it said, adding that MMC Gamuda KVMRT will take steps to defend itself.

MMC Corp said the suit will not have any significant financial and operational impact on the group for the financial year ending Dec 31, 2016.

MMC Corp shares closed 7 sen or 3.48% lower at RM1.94, with a market capitalisation of RM5.97 billion. — theedgemarkets.com

SHARE
RELATED POSTS
  1. Strong property sales push Gamuda’s 2Q profit up 43%
  2. Gamuda JV awarded RM1.45b Singapore MRT project
  3. Gamuda 1Q net profit down 29% q-o-q to RM152 mil; declares six sen dividend