KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) yesterday said it mutually agreed to terminate a RM97.7 million contract to build student hostels for University Malaysia Kelantan in Bachok, Kelantan two months after the award.
SCIB said in the filing with Bursa Malaysia Securities Bhd that it had agreed with Landasan Kapital (M) Sdn. Bhd to terminate the contract awarded to it on Jan 16, 2024, to " mitigate the project risks arising from potential project delays due to tight project timeline".
The project has not commenced, and no revenue or costs have been taken up in the accounts.
SCIB said the termination of contract will not have any material effect on the gearing, earnings per share and net assets of SCIB for the financial year ending June 30, 2024.
SCIB's share price closed half a sen lower yesterday to 32.5 sen a share, giving it a market capitalisation of RM208 million.