The Board of Directors of WCT wishes to announce that the Company’s 70%-owned joint-controlled  company, Segi Astana Sdn Bhd ('SASB'), had on 21 March 2019 through its solicitors served a Notice of Arbitration dated 21 March 2019 on Malaysia Airports Holdings Berhad ('MAHB'), claiming against MAHB a sum of RM70.0 million in respect of losses and damages suffered pertaining to, inter alia, the delay in the commencement of the commercial operation of the KLIA-2 Integrated Complex. The sums are payable pursuant to the Concession Agreement dated 22 September 2011 executed between SASB, WCT Berhad ('WCTB') and MAHB ('the Concession Agreement'). 

Concurrently, SASB and WCTB have on 21 March 2019, received a Notice of Arbitration from MAHB through its solicitors, whereby MAHB is claiming from SASB and WCTB fixed monthly charges of RM958,849-00 per month for the supply of chilled water for the cooling system of the KLIA-2 Integrated Complex from September 2013 until to date, allegedly due pursuant to the Concession Agreement ('MAHB’s Claim').  Both SASB and WCTB are disputing and challenging MAHB’s Claim.

The arbitration proceedings are not expected to have any material financial or operational impact on the Company, SASB or WCTB, for the financial year ending 31st December 2019.

The Company will announce any material development arising from the above proceedings as and when necessary.

This announcement is dated 25 March 2019.