UPDATE ON LITIGATION: - ARBITRATION PROCEEDINGS BY MMCEG-GAMUDA JOINT VENTURE AGAINST WAYSS & FREYTAG (MALAYSIA) SDN BHD ("ARBITRATION PROCEEDINGS")
We refer to our announcements on 17 December 2008, 19 January 2009, 16 April 2013, 18 April 2013, 27 May 2013, 9 June 2014, 16 December 2014 and 26 August 2016 in respect of the Arbitration Proceedings.
Gamuda which has a 50% interest in the MMCEG-Gamuda Joint Venture (“JV”), wishes to announce that the JV and Wayss & Freytag (Malaysia) Sdn Bhd (“Wayss & Freytag”) have agreed to settle the matter amicably. Both parties have jointly proceeded to take steps to terminate the Arbitration Proceedings.
Accordingly, the JV has agreed to pay Wayss & Freytag a lump sum of RM109,140,045.85 inclusive of interest (“Settlement Sum”) as full and final settlement of the Arbitration Proceedings (“Settlement”).
The Board of Gamuda has deliberated on the Settlement and is of the opinion that it is in the best interest of the JV to agree to the Settlement. This is in view that the Settlement would save further costs and time as opposed to continuing with the protracted legal process that has been ongoing since 2008.
The Settlement will not have any material impact on the earnings of the Gamuda Group for the financial year ending 31 July 2017. The Settlement Sum had been expensed off in prior years.
This announcement is dated 2 February 2017.
|Company Name||GAMUDA BERHAD|
|Date Announced||02 Feb 2017|
|Category||General Announcement for PLC|