I dont even know how GKent is related to UMNO. Sure, Tan Sri was close to Najib but that was the past. Like how Scomi was Khairy's, but now it is not. Opcom also, Mukhriz sold everything but people still kept on saying it is his. walao....
Remember its a fixed price contract, no materiel escalation allowed, no force Majeure to allowed under the contract for increases n costs including delays due to Covid. These are contract killer issues that MRCB being a Bumi company with EPF as the major shareholder will likely be able to resolve with the Government. Having GK as a partner it was unlikely 'deals' that could be done on any cost escalations.
Now that GK is out it will be interesting to see how this "fixed price" contract escalates in price and time, and to see if MRCB can even deliver a reliable system having never done so before.
Further, the business relationship between partners had fallen out of love to a point where a divorce was inevitable. I think its a great deal to walk away from a unhappy partnership and from a potentially killer contract intact and with a large lump of cash.
look like the LRT3 not good deal. total discounted cash 106mil for 11.6bil contract. from begining of fixed price contract until June 21, already booked profit 33.15 each. GK getting 53mil in this deal, so there shld another additional 20mil in coming qtr? so to get out a bad a bad deal with payment is a good deal with loss of disposal only 4mil, I think. otherwise, GK has to maintain a bond 568mil (share half) until 2029 with other liabilities
I think still worth waiting and see. 600M on the glove factory is still a good business for Gkent. If they can secure more projects in the next few quarters, things might be a bit diff from now.
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MiaoMiao7
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Posted by MiaoMiao7 > 2021-07-13 16:35 | Report Abuse
https://www.theedgemarkets.com/article/johan-holdings-gains-rm21085-mil-diners-club-sale