AWC terminates RM130m TBS service contract with government

PETALING JAYA: Building management services provider AWC Bhd and the government of Malaysia have agreed to terminate a five-year contract worth RM130 million to manage the facilities of Terminal Bersepadu Selatan (TBS) in Bandar Tasik Selatan, Kuala Lumpur, on mutual grounds.
AWC’s board of directors said in a Bursa Malaysia filing, Ambang Wira Sdn Bhd (AWSB) and the government had on Oct 10, entered into a Mutual Termination Agreement (MTA) to terminate the original contract dated June 9.
In a filing dated Aug 26, the company said the commencement date for the maintenance of TBS had been deferred pending the resolution of certain operational and technical matters between the government and the existing contractor for TBS.
“The MTA is conditional that any payments made by the government to date shall be deemed as the full and final settlement of payment for the value of all work or services carried out or partially performed for the original contract by AWSB up to date. Todate, AWSB has not received any payments from the Malaysian government for the original contract, and has incurred minimal expense in relation thereto,” the board said.
The MTA will negatively impact AWC’s financial performance over the intended duration of the original contract.
However, the impact is expected to be minimal as AWSB has secured other new contracts over the last three months.
AWC’s shares dipped 0.97% to close at RM1.02 with some 111,600 shares traded. Year-to-date the stock has made gains of 7.9%.