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KUALA LUMPUR (Oct 11): Shares of AWC Bhd fell 3.43% in early trade this morning after the RM130 million contract awarded to AWC by the federal government to maintain the Integrated Transport Terminal in Bandar Tasik Selatan (BTS) has been terminated after over one year of deference.
At 9.01am, AWC fell 3.5 sen to 98.5 sen with 162,100 shares traded.
AWC’s wholly-owned unit Ambang Wira Sdn Bhd and the government have mutually agreed to end the five-year contract, which was initially awarded on June 9, 2016.
The government made no payment to Ambang Wira during the contract period, said AWC, as the subsidiary did not perform any maintenance works since it was first awarded the contract.
This, it said, came as the commencement date for the maintenance of the terminal had been deferred indefinitely on Aug 26, 2016, pending the resolution of certain operational and technical matters between the government and the existing contractor for TBS.
AWC acknowledged that the contract termination will negatively impact its financial performance over the intended duration of the original contract. However, the effect is expected to be minimal as AWC has secured other new contracts over the last three months as had been previously announced. — theedgemarkets.com
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