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Kuala Lumpur, Kuala Lumpur, Malaysia

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Notice of Arbitration Dated 21 March 2019 From Solicitors of Segi Astana Sdn Bhd to Malaysia Airports Holdings Berhad and Notice of Arbitration Dated 21 March 2019 From Malaysia Airports Holdings Bhd to Segi Astana Sdn Bhd And WCT Berhad Pursuant To Clause 14.1 Of The Concession Agreement Dated 22 September 2011

BackMar 22, 2019
Type Announcement
Subject OTHERS
Description

NOTICE OF ARBITRATION DATED 21 MARCH 2019 FROM SOLICITORS OF SEGI ASTANA SDN BHD TO MALAYSIA AIRPORTS HOLDINGS BERHAD AND NOTICE OF ARBITRATION DATED 21 MARCH 2019 FROM MALAYSIA AIRPORTS HOLDINGS BHD TO SEGI ASTANA SDN BHD AND WCT BERHAD PURSUANT TO CLAUSE 14.1 OF THE CONCESSION AGREEMENT DATED 22 SEPTEMBER 2011

Malaysia Airports Holdings Berhad (“MAHB” or the “Company”) wishes to announce that it had on 21 March 2019, received a Notice of Arbitration from Segi Astana Sdn Bhd (“SASB Notice”), whereby SASB claims against MAHB for the sum of RM70 million in respect of the alleged losses and damages pertaining to inter alia, the delay in the commencement of the commercial operation of the KLIA-2 Integrated Complex. The Company is disputing and challenging the claims by SASB.

On 21 March 2019, MAHB issued a Notice of Arbitration against WCT Berhad (WCT) and Segi Astana Sdn Bhd (SASB) (“MAHB Notice”) to recover the fixed monthly charges of RM958,849.00 per month for the supply of chilled water for the cooling system of the KLIA-2 Integrated Complex.  The sums are payable pursuant to Clause 8.1(d) of a Concession Agreement between the Company, WCT and SASB signed on 22 September 2011 relating to the privatization of the development of the KLIA-2 Integrated Complex. This was done in accordance to the Company’s corporate governance and best practices in fulfilling our obligations to our shareholders.

The Company has appointed a law firm in Malaysia to represent and assist the Company in the arbitration proceedings.

The arbitration proceedings are not expected to have any material financial and operational impact to MAHB Group or the Company’s business operation.

Any further updates in respect of any material development will be made from time to time.

 

This announcement is dated 22 March 2019.




Announcement Info

Company Name MALAYSIA AIRPORTS HOLDINGS BERHAD
Stock Name AIRPORT
Date Announced 22 Mar 2019
Category General Announcement for PLC
Reference Number GA1-22032019-00040