Siab Holdings agrees to Yong Tai’s settlement arrangement following termination of projects

• Siab is the main contractor of the two projects owned by Yong Tai.
• The projects are Impressions U-Thant, a 10-storey luxury condominium with 108 units at Jalan U Thant, Kuala Lumpur, and Amber Cove, a 36-storey serviced apartment block with 838 units at Impression City, Kota Laksamana, Melaka.

KUALA LUMPUR (April 19): Siab Holdings Bhd said it has accepted a settlement arrangement from Yong Tai Bhd following their mutual agreement to terminate two high-rise property projects with a combined outstanding contract value of RM190.48 million.

Siab is the main contractor of the two projects owned by Yong Tai.

The projects are Impressions U-Thant, a 10-storey luxury condominium with 108 units at Jalan U Thant, Kuala Lumpur, and Amber Cove, a 36-storey serviced apartment block with 838 units at Impression City, Kota Laksamana, Melaka.

Yong Tai owes Siab RM3.37 million of which RM2.98 million will be offset with two units of condominium at Impressions U-Thant and one unit of apartment at Amber Cove, said SIAB in a stock exchange filing.

The remaining RMM386,380 will be settled by Yong Tai within the next three months, the group added.

Siab said the settlement will enable the group to obtain recoverability of up to 89% from the current outstanding amount owed by Yong Tai.

On March 31, SIAB  and Yong Tai agreed in principle to terminate the two projects as they could not come to agreement on the revised cost plan and work programme, after  both projects were delayed due to the pandemic and the cost of the construction materials went up.

Siab's share price closed half sen or 3.85% lower at 12.5 sen, valuing the company at RM61.20 million, while Yong Tai fell half sen or 1.7% to 28.5 sen, for a market capitalisation of RM105.96 million.