KUALA LUMPUR: Construction and property development company TSR Capital Bhd has sold its 49 per cent interest in a joint venture (JV) company with a RM676.8 million contract to build a shopping mall for Merdeka 118 at a "no loss, no gain" basis.
The contract was awarded to the JV company in 2018.
In a filing with Bursa Malaysia Securities yesterday, TSR Capital said its subsidiary, TSR Bina Sdn Bhd (TSRB) sold its interest in WCT TSR Sdn Bhd for RM1.47 million.
TSRB has also derecognised its share of profits of investment in JV up to June 30, 2022 amounting to RM4.478 million.
TSR Capital said the move to sell its interest in the joint venture is for the benefit of both TSRB and WCTB as well as the joint venture company, due to a tight timeline for the JV Co. to meet in order to complete the contract within the timeframe required by the PNB Merdeka Ventures Sdn Bhd.
"Therefore, the parties agreed that it will be more advantageous to the JV Co. if WCTB assumes the full responsibility for the completion of the contract as WCTB will have a freehand in the decision making process, job execution and resources management," TSR Capital said in its filing with Bursa Malaysia Securities.
TSR Capital's share price was unchanged at 21 sen, while WCT's share price was up 1.2 per cent at 41.2 sen.