Vertice loses SUKE contract

KUALA LUMPUR: Vertice Bhd's letter of award for a RM339.86mil sub-contract job for the proposed Sungai Besi-Ulu Kelang Elevated HIghway (SUKE) project has been withdrawn.

Vertice's unit Vertice Construction Sdn Bhd had received the letter of award issued by San Mutual MajuJaya Sdn Bhd, which in turn received its appointment from the project's contractor, Chengaljati Sdn Bhd.

However, Vertice said in a stock exchange filing that the highway's concessionaire, Turnpike Synergy Sdn Bhd, had terminated Chengaljati as its contractor. 

As a result, Vertice's contract stemming from San Mutual Majujaya was also withdrawn.

Vertice said it will be compensated for the costs and expenses of incurred in the project which is estimated to be less than RM1.5mil.

"In view that the Group has several projects currently under bid, has other concurrent on-going projects and is confident of securing additional new projects in the foreseeable future, this Withdrawal is not expected to materially affect the earnings and net assets of the Group," it said.

At 5pm, the counter closed 0.5 sen or 0.56% higher at 89 sen on the back of very low volume of trade.

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