Silk, IJM Corp fall on RM395m highway concession deal termination

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KUALA LUMPUR (Nov 25): Silk Holdings Bhd fell as much as 15% on termination of its highway concession sale to IJM Corp Bhd for RM395 million.

Silk Holdings fell as much as 10 sen to 55 sen before reducing losses. At 10.01am, Silk Holdings was traded at 57.5 sen with some 16 million shares done.

The bourse's eighth-largest decliner was also the fifth most-active stock.
Construction firm IJM Corp fell as much as 19 sen or 3% to RM6.62. At 10.07am, the stock was traded at RM6.72 with 168,300 shares done.

For comparison, the FBM KLCI rose 7.78 points or 0.4%.

Yesterday, Silk Holdings and IJM Corp said in separate statements to the bourse that both companies had agreed to terminate the sale and purchase of the entire stake in Sistem Lingkaran Lebuhraya Kajang Sdn Bhd.

According to Silk Holdings' website, Sistem Lingkaran Lebuhraya Kajang owns the concession for the 37-km Kajang Silk Highway in the Klang Valley.

The concession, which began in 1996, expires in 2037, according to Silk Holdings.

In statements to the exchange, Silk Holdings and IJM Corp said the termination was due to the seller and buyer's failure to fulfill the terms of the share sale agreement signed earlier.

As such, Silk Holdings said it would refund IJM Corp the deposit with all interest accrued.