KUALA LUMPUR: Pestech International Bhd's share price dropped as much as 14.7 per cent in morning trade after it said IJM Corporation Bhd no longer plans to take a substantial stake in the company.
At 10.50am, its shares dropped 8.82 per cent or 1.5 sen to 15.5 sen from its closing price of 17 sen on Thursday.
In a statement to Bursa Malaysia Securities on Thursday, Pestech said IJM's planned purchase of a 44.83 per cent stake in the company was terminated but Pestech's joint venture with IJM's unit to complete the Kuala Lumpur International Airport (KLIA) aerotrain replacement project will not be affected.
Pestech said the termination was due to the non-fulfilment of the conditions precedent pursuant to the subscription agreement.
The KLIA aerotrain replacement project is slated to be completed by the first quarter of 2025.