Tuesday, January 6, 2009

WCT Race Course Terminated In Dubai.

SHARES of Malaysian construction firm WCT Bhd dived 30 per cent today after the cancellation of a US$1.3 billion contract to build a racecourse in Dubai. But the Malaysian company said the step was a “breach,” and it was considering all options.

Dubai’s Meydan LLC, which in 2007 commissioned a 50-50 joint venture of WCT and Arabtec to build the racecourse, said the contract was cancelled “because of non-adherence to the agreed time schedule for construction”. WTC said in a statement the original date of completion of the contract was October 7, 2009.

WCT shares last traded 29.5 per cent lower at RM1.29 before the company requested for a halt in trading. The company is due to make a further announcement today. Dealers said shares are automatically suspended when they rise or fall by 30 per cent from the previous day’s closing price. WCT said it was given a 14-day notice to cancel the contract.

Dubai’s Meydan said it is considering other companies to complete the racecourse by 2010, when it is to be opened with the Dubai World Cup horse race. - Reuters

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