KUALA LUMPUR (April 23): Sime Darby Bhd’s 36.63%-owned joint venture (JV) company Weifang Port Services Co Ltd (WPS) has entered into an agreement with CCCC Tianjin Dredging Co Ltd to settle 187 million yuan (RM118 million) interest on late payment by WPS.
Under the new settlement agreement, WPS is required to pay the outstanding sum by Nov 20.
CCCC Tianjin Dredging was the JV’s contractor to build a 35,000 deadweight tonne (DWT) main channel in Weifang Port, Shandong, China for 1.17 billion yuan (RM741 million).
However, WPS only paid 459 million yuan of the total. It did not settle the outstanding sum of 711 million yuan (RM450 million) until the court ordered it to pay the amount plus interest and legal costs, amounting to RM728 million, after CCCC Tianjin filed a lawsuit against it.
Still, WPS was late in the final instalment which was due on Dec 10, 2020. The JV company only made payment on April 15, 2021.
Consequently, CCCC Tianjin Dredging imposed interest of 187 million yuan (RM118 million) for the late instalment.
Sime Darby’s share price closed one sen or 0.44% higher at RM2.30, bringing it a market capitalisation of RM15.65 billion. There were 5.67 million shares done.
