Astral Supreme not affected by JV termination with Zenith

PETALING JAYA: The termination of a joint venture for the proposed Penang-Butterworth undersea tunnel project will not affect the partnership between Astral Supreme and Zenith PMC Sdn Bhd in the future.
In a statement released yesterday, Zenith said the termination of the joint venture doesn't preclude it from engaging Astral Supreme for future project.
"The termination is effected as Astral Supreme Construction Sdn. Bhd. could not fulfil its obligations as stated in the joint venture agreement," Zenith said.
Astral Supreme in a filing with Bursa Malaysia on Friday had said that the termination was to do with its failure to carry out a feasibility study and design of the tunnel sea plan. Astral Supreme its failure was to do with its inability to secure consultants to undertake the project within the budget and the funding requirements.
Zenith however in a statement yesterday clarified that the feasibility study on the main roads in Penang have been carried out by professional consultants. Astral Supreme's managing director Datuk Eddie Chai Woon Chet is a shareholder in Zenith.
"The final report of the feasibility study is scheduled to be submitted to the Penang State Government soon. It will be vetted by an independent consultant appointed by the State Government," said Zenith chairman Datuk Zarul Ahmad Zulkifli.
Astral Supreme's share price closed at 17.5 sen yesterday, down 0.5 sen.