Jaks share price down on dispute with Star Media Group

PETALING JAYA: Jaks Resources Bhd's (JRB) share price fell 2.72% this morning after its sub-subsidiary Jaks Island Circle Sdn Bhd (JIC) instructed solicitors to file with the High Court an injunction to stop Star Media Group from claiming a bank guarantee of RM50 million provided for under a joint development project in Seksyen 13, Petaling Jaya.
JRB’s share price hit a low of RM1.78 and a high of RM1.82 before settling at RM1.79 with 2.11 million shares changing hands.
Star Media Group’s share price remained unchanged at RM1.37 with 96,300 shares done.
JIC had provided inter-alia, an irrevocable and on demand bank guarantee in favour of Star Media for the sum of RM50 million guaranteeing the completion and delivery of vacant possession by the purchaser of Tower A within three years from the vacant possession date or three years from the date of approval of the agreed plans for Tower A, whichever is later.
The board of directors of JIC are of the view that the call on the bank guarantee is baseless and JIC has valid grounds for the High Court to grant the injunction as Star has in the course of JIC’s execution of Tower A prevented the completion and thus JIC should have been given extension of time to complete Tower A.