ML Global terminates RM76.44m contract with Pelangi Kolonel

PETALING JAYA: ML Global Bhd and Pelangi Kolonel Sdn Bhd (PKSB) have agreed to terminate a contract worth RM76.44 million in relation to the proposed development project in Cameron Highlands comprising service apartments, hotel and office.
In a filing with Bursa Malaysia, ML Global said the contract termination was due to the request from PKSB to temporarily stop the work since February 2017 as it decided to delay the development of the project with no specific date for commencement work.
ML Global said both parties agreed to not make any claim due to the contract termination for the settlement of balance outstanding amount of about RM1.54 million for the progress of design works done.
The group said the contract termination will have no effect on its issued share capital but it will cease to contribute to the future revenue and profit of the group.
Upon termination of the contract, ML Global’s current outstanding order book stood at RM2.3 billion.
ML Global gained 2 sen or 1.16% to RM1.74 on Friday with 554,000 shares traded.