PETALING JAYA: YFG Bhd’s RM40 million contract for the construction of a mixed development in Penang has been terminated by Atta Properties Sdn Bhd.
The group told the stock exchange that its wholly owned subsidiary YFG Engineering Sdn Bhd (YFGE) received the notice of termination from Atta Properties on Dec 13.
“The notice of termination was served to YFGE owing to some legal and financial issues which currently affect the progress and sub-contractor of the project on the part of Atta Properties,” it said.
The contract is for works related to the construction of a 23-storey building comprising apartments and office units in Bayan Lepas, Penang.
The termination is not expected to have any material effect on the earnings, net assets and gearing of the company and the group for the financial year ending Sept 30, 2019 as the project was at the initial stage of commencement.
The stock was untraded today.