KUALA LUMPUR: Pestech International Bhd's share price fell as much as 18 per cent in early trade after Malaysia Airports Holdings Bhd announced that it has terminated its award of the RM742.45 million project, to design and build Kuala Lumpur International Airport aerotrain replacement programme, to the company.
As at 10.09am the company's shares were trading at 26.5 sen, with some 23 million shares changing hands.
Malaysia Airports Holdings Bhd (MAHB) said in a statement yesterday that the termination is due to amongst others, Pestech Technology Sdn Bhd's (PTSB) non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline.
PTSB was appointed by MAHB's unit Malaysia Airports (Sepang) Sdn Bhd as the design and build contractor for the KLIA aerotrain replacement programme on December 14, 2021 through an open tender process.
Pestech International is seeking legal redress for the termination which " will pose unfavourable financial effects to the group".
Pestech International explained in its filing to the bourse that the letter of award for the project was announced on December 27, 2021, and to run until February 11, 2034.
The project comprised design and build works of RM396 million, financing charges of RM104.2 million and operation and maintenance services of RM242.75 million, over a period of 10 years from year 2025 to 2034.
MAHB's share price was down 0.73 per cent to RM6.84 a share as at 10.09am.
