WCT Holdings Bhd said today that its wholly-owned subsidiary WCT Bhd (WCTB) and Meydan Group LLC had reached a settlement agreement yesterday (July 13), under which Meydan will pay WCTB AED726.57 million (roughly RM828.25 million) in a full and final settlement related to the Nad Al Sheba Dubai Racecourse contract dispute between the two parties. The settlement amount is equivalent to 65 percent of the principle sum of AED1.15 billion awarded to WCTB earlier by Dubai’s Arbitral Tribunal under the final judgement in relation to the case, according to a Bursa Malaysia filing today.
“The WCT (Holdings) board of directors believes that, barring any unforeseen events, the settlement, when concluded, will add positively to the group’s earnings per share and net assets per share.”
“The group’s net gearing ratio is likely to improve as well,” WCT Holdings added.
Meydan will pay the RM828.25 million final settlement payment in two parts, according to WCT Holdings, with the second tranche divided into 12 equal quarterly instalments.
WCT Holdings stated the first payment of AED279.45 million (approximately RM318.56 million) will be made to WCTB by Tuesday, which is equal to about 25% of the principle value of AED1.15 billion (July 20, 2021).
There will be more to come./n
