Quick take: Scomi up 84% in active trade

KUALA LUMPUR: Shares in Scomi Group Bhd surged more than 84% in early trade Friday, following news that its dispute over the monorail service with Prasarana Malaysia Bhd has been resolved.

The counter jumped 84.62%, 5.5 sen to 12 sen. It is currently the most active counter on Bursa Malaysia with 116.12 million shares traded.

Scomi-WB surged 80%, or two sen to 4.5 sen with 46.9 million shares traded.

Scomi has entered into a settlement agreement (SA) with Prasarana to resolve the disputes in relation to the Kuala Lumpur Monorail Fleet Expansion Project.

Scomi’s unit will receive from RM181mil from Prasarana to undertake the remedial works to put five four-car monorails into service and to pay its lenders, staff and creditors.

This was part of a settlement agreement reached on Thursday between Scomi Transit Projects Sdn Bhd and Prasarana to resolve the disputes relating to the Kuala Lumpur monorail fleet expansion and the completion of the stations, electrical and mechanical systems, construction of a depot and delivery of 12 sets of new four-car trains.

Scomi said both parties had signed the settlement agreement to amicably determining the legal proceedings between the parties while concurrently moving forward with the completion of the project.

It also said that apart from the RM181mil payment, both parties would work out an agreement to complete and delivery seven four-car monorail trains within 30 days of the effective date.

Source : TheStar