The Company wishes to announce that its subsidiary, HCM Engineering Sdn Bhd (“HCM”)  has received a letter of termination from Turnpike Synergy Sdn Bhd (“TSSB”) for the construction of the proposed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) (“Project”) undertakes by the joint venture between HCM and Hatimuda Sdn Bhd (“Hatimuda”) on a 40% : 60% basis (HCM-Hatimuda JV”).  

HCM-Hatimuda JV was awarded with the Project by TSSB in August 2016 with a value of approximately RM315.8 million and was expected to complete it in 30 months period by 28 February 2019.

The notice of termination was served by TSSB as a result of an overall delay and physical delay of the Project undertaken by HCM-Hatimuda JV. 

The Project was solely financed, implemented and managed by the joint venture party, Hatimuda, hence, the termination does not have any significant impact on the net assets and earnings of Protasco Group for the current financial year and year ending 31 December 2019.