Nexgram drops RM338m project

PETALING JAYA: A unit of Nexgram Holdings Bhd, Intra Binaraya Sdn Bhd (IBSB), has terminated a US$77 million (RM338.8 million) job to construct the vaccine fill and finish plant and pharmaceutical and neutraceutical plant and research centre in Negri Sembilan.

Nexgram in a filing with Bursa Malaysia said it had backed out from the job as engineering, procurement and construction main contractor, after Oriental Mace Sdn Bhd (OMSB) was not able to furnish all relevant documents and information required to facilitate and complete the due diligence undertaken by IBSB.

The projects, according to a filing with Bursa Malaysia, was through a series of agreements between AJ Biologics Sdn Bhd, AJ Research & Pharma Sdn Bhd and AJ Research Center Sdn Bhd with OMSB.

This is the second time the development of the projects in Negri Sembilan have failed to take off. In January this year, OMSB had terminated its appointment of Versatile Creative Bhd as the main contractor.

Nexgram’s share price was up half a sen to close at four sen today. It has a market capitalisation of RM75 million.