2 April 2021
An arbitrator has ordered WCT Holdings Bhd’s subsidiary to pay RM73.83 million to Malaysia Airports Holdings Bhd (MAHB), after hearing their dispute relating to the klia2 Integrated Complex cooling system project.
Segi Astana Sdn Bhd, owned 70% by WCT, was ordered to pay the amount, based on the fixed monthly charges for chilled water for the cooling system of RM958,849 from May 2014 until September 2020.
Segi Astana is also to pay MAHB RM894,072 in legal and other related costs.
“As a result of the above final award, the WCT Group will share an additional loss in its joint venture of approximately RM28 million for the financial year ended Dec 31, 2020,” WCT said in a stock exchange filing.
“The board is currently seeking further legal advice on the above final award and subject to legal advice to be received, will consider all its legal rights and remedies in respect of the same,” the group said.
The arbitration was filed by MAHB against WCT and Segi Astana in March 2019 to recover the fixed monthly charges for the chilled water supply.
This was in light of a separate arbitration notice filed by Segi Astana against MAHB, seeking RM70 million from the airport operator for alleged losses and damages due to the delay in the commencement of commercial operations at the klia2 Integrated Complex.
Shares of WCT slid half a sen to 57.5 sen today, valuing the group at RM815.44 million. MAHB closed unchanged at RM6.38, valuing the airport operator at RM10.59 billion.
Did you find what you are looking for? Try out the enhanced Google Search: