KUALA LUMPUR: Pestech International Bhd and Syarikat Sesco Bhd have amicably decided to terminate their contract for the Entinggan project.
In a filing to Bursa Malaysia, Pestech said the decision was made after considering the economic factors of the project.
Last year, Pestech's subsidiary Pestech Sdn Bhd (PSB), in a joint venture with Sky High Construction Sdn Bhd, secured a RM109.98 million contract from Syarikat Sesco for the construction of an electrical substation project in Entinggan in Kuching, Sarawak.
The contract value allocation under the joint venture is 60 per cent for PSB and 40 per cent for Sky High.
"In that respect, the acceptance of the annulment comes with the understanding that there will be no claims against each other arising from the annulment of the project," it said.
Pestech said the termination does not pose significant impact to the group for the financial year ending Sept 30, 2024 (FY24), since the project had not commenced.
Pestech's shares closed half a sen or 2.08 per cent lower at 24 sen today, giving it a market capitalisation of RM228.51 million.