SCIB Enforces Rights to Withdraw from Project

Company to be reimbursed commitment fee paid out for the project following mutual agreement KUCHING, MALAYSIA, Jan 27, 2023 – (ACN Newswire) – Civil engineering specialist Sarawak Consolidated Industries Berhad (SCIB) today announced that the Company has issued a letter of withdrawal to Kencana Healthcare Sdn. Bhd. (KHSB) for the proposed engineering, procurement, construction and commissioning (EPCC) contracts involving a specialist hospital project located in Johor Bahru.

Group MD and CEO of SCIB, Encik Rosland bin Othman

SCIB had accepted a letter of award from KHSB dated 13 August 2021 for EPCC contracts involving the capital equipment procurement as well as the leasing concession for the procurement, supply, installation, testing and commissioning of medical equipment. SCIB and KHSB have mutually agreed to the Company withdrawing from the project.

As part of the withdrawal from the project, KHSB will reimburse under a settlement agreement, the commitment fee amounting to RM1.65 million that SCIB had paid out in two tranches. The withdrawal from the contracts will not have any material effect on the gearing, earnings per share and net assets of the Company for the financial year ending 30 June 2023.

Group Managing Director of SCIB, Encik Rosland bin Othman said, “The Company is enforcing its rights under the contracts and taking the necessary measures to protect SCIB’s interests in mitigating the risks arising from the long delay or non-movement of project progress due to the uncertainties and inability to secure the necessary operator for the project. Additionally, this decision was made due to reviewing and updating our order book records to reflect the current situation.”

Sarawak Consolidated Industries Bhd: 9237 [BURSA: SCIB], http://scib.com.my


Topic: Press release summary
Source: Sarawak Consolidated Industries Bhd

Sectors: Daily Finance, Daily News, Construct, Engineering, Local Biz
https://www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2023 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Source: https://www.acnnewswire.com/press-release/english/80725/

Source: https://webfulnet.com/

Accessibility Dashboard

Accessibility settings have been reset

Help = available voice commands

Hide help = available voice commands

Scroll down = available voice commands

Scroll up = available voice commands

Go to top = available voice commands

Go to bottom = available voice commands

Tab = available voice commands

Tab back = available voice commands

Show numbers = available voice commands

Hide numbers = available voice commands

Clear input = available voice commands

Enter = available voice commands

Reload = available voice commands

Stop = available voice commands

Exit = available voice commands