KUALA LUMPUR: Pestech International Bhd today said it will seek appropriate legal redress with regards to the termination of its unit, Pestech Technology Sdn Bhd's, aerotrain design, supply, installation, testing and commissioning (D&B) contract for Kuala Lumpur International Airport (KLIA).
The company said in a filing with Bursa Securities that the termination will pose unfavourable financial effects to the group.
Pestech Technology received the termination notice as D&B contractor for KLIA aerotrain, or automated people mover, from Malaysia Airports (Sepang) Sdn Bhd (MASSB) in a letter dated August 16, 2023.
Pestech International explained in thefiling to the bourse that the letter of award for the project, at a total contract value of RM742.95 million, was announced on December 27, 2021 and was to run until February 11, 2034.
The project comprised D&B works of RM396 million, financing charges of RM104.2 million and operation and maintenance services of RM242.75 million, over a period of 10 years from year 2025 to 2034.
"Pestech International is currently consulting its legal advisor and will seek appropriate legal redress under the contract," the company said.
Pestech International's share price was down 7.9 per cent to close at 29 sen onWednesday.