1.         Pursuant to Paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), the Company wishes to announce that its wholly-owned subsidiary, UEML was served with a Notice of Arbitration (“NOA”) on 17 April 2019 filed by IECSB in relation to disputes arising from the Agreement and Conditions of PAM Contract 2006 (With Quantities) (“Agreement”) together with a Letter of Award dated 15 June 2012 (“LOA”) for the construction of Imperia in Puteri Harbour, Iskandar Puteri, Johor (“Project”) seeking a declaration sum of RM29,250,266.79 as the total amount of the final account. The LOA is to be read together with the Agreement (collectively referred to as the “Contract”).  

2.         IECSB was appointed by UEML as the main contractor for the construction of the Project under the Contract at a sum of RM268.6 million. Its scope covers the:

a.         Overall main works;

b.         ‘Stesen Suis Utama’ (“SSU”) and ‘Pencawang Pembahagian Utama’ (“PPU”); and

c.         Construction of mock-up units.

3.         IECSB has raised certain claims with respect to the performance of the obligations in the Contract and seeks inter alia, a declaration that RM29,250,266.79 be the total and final amount of the final account or any other amount assessed by the Arbitral Tribunal.

4.         UEML’s position is that IECSB’s claims are without merits and UEML will vigorously defend its position accordingly.

5.         The Company believes that the NOA and potential arbitration proceedings are not expected to have material financial and operational impact on the Company for the financial year ending 31 December 2019. Further announcements on any material development of the matter will be made to Bursa Malaysia from time to time.

This announcement is dated 18 April 2019.