WCT calls Meydan move a 'breach'
Kuala Lumpur, January 6, 2009
Malaysian construction firm WCT Bhd said the cancellation of a $1.3 billion contract to build a racecourse in Dubai 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 percent lower at 1.29 ringgit before the company requested for a halt in trading. The company is due to make a further announcement on Tuesday.
Dealers said shares are automatically suspended when they rise or fall by 30 percent from the previous day's closing price.
WCT said it was given 14 days 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