PETALING JAYA: Prestariang Bhd said it does not have the intention to challenge the government’s decision to terminate the RM3.5 billion Immigration Department’s National Immigration Control System (SKIN) project.
The termination of the concession agreement for the SKIN project came into effect today, according to the group’s filing with the stock exchange today.
This comes after it received a letter from the government dated Dec 11 to terminate the project by way of expropriation.
“Following clarification with the government, the parties have mutually agreed that the termination of the concession will take effect on Jan 22,” Prestariang in a stock exchange filing.
The group reiterated that its unit Prestariang SKIN Sdn Bhd (PSKIN) is not in default of the concession agreement.
Prestariang noted that it respects the government’s decision to exercise its rights to terminate the concession by expropriation in accordance with the terms of the concession agreement.
“PSKIN is entitled to compensation in accordance with the formula set out in the concession agreement, for which it is currently in discussions with the government to settle amicably in the interests of both parties,” it added.
Prestariang’s share price has been dragged by news of SKIN termination. Its stock fell 7.35% to close at 31.5 sen today with 13.16 million shares done.