PETALING JAYA: Prostasco Bhd’s share price fell as much as 6.81% to 20.5 sen this morning after its construction contract for the proposed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project was terminated due to delays in the project.
At 11.18 am the stock was still trading at 20.5sen with 994,600 shares done.
The group told the stock exchange yesterday that its subsidiary HCM Engineering Sdn Bhd received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB).
“The notice of termination was served by TSSB as a result of an overall delay and physical delay of the project undertaken by HCM-Hatimuda JV(joint venture),“ it said in a filing with the stock exchange.
HCM-Hatimuda JV was awarded with the project by TSSB in August 2016 for about RM315.8 million and was expected to complete it in 30 months period by Feb 28, 2019.
HCM and Hatimuda hold 40% and 60% of the JV.
Protasco, however, said as the project was solely financed, implemented and managed Hatimuda, hence the termination does not have any significant impact on the group’s net assets and earnings for the current financial year and year ending Dec 31, 2019.