Pursuant to paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of the Company wishes to announce that Citaglobal Land Sdn. Bhd. (formerly known as WZS KenKeong Sdn. Bhd.), a wholly-owned subsidiary of the Company had on 2 June 2023 issued and served a Notice of Adjudication under Sections 7 and 8 of the Construction Industry Payment & Adjudication Act 2012 in the amount of RM20,819,302.30 against the Respondent in relation to the construction and completion of part of West Coast Expressway Section 9 Mainline Works from Kg Lekir Interchange to Cangkat Cermin Interchange.

The dispute between the Claimant and the Respondent relating to the Contract which the payment claim was served to the Respondent by hand on 6 January 2023, involves the following:

a. By way of a Subcontract Agreement dated 16 October 2015, the Respondent appointed the Claimant as the subcontractor for the construction and completion of part of the West Coast Expressway Section 9 Mainline Works from Kg Lekir Interchange to Cangkat Cermin Interchange;
b. In accordance with the Respondent’s instructions, the Claimant performed variation works in the amount of RM20,819,302.30;
c. Despite the Claimant’s completion of its contractual obligations, the Respondent refused, failed and/or neglected to pay the outstanding sum of RM20,819,302.30.

The Claimant seeks for the payment in the sum of RM20,819,302.30, the adjudication costs, interest that the Adjudicator deems fit and reasonable and any other remedies and/or reliefs deemed fit by the Adjudicator.

The aforesaid Adjudication proceedings are not expected to have material operational impact to the Company (as the works under the Contract is substantially completed) but will have material financial impact for the financial year ending 31 December 2023 if the Claimant successful in its claim against the Respondent.

None of the directors or major shareholders of CITAGLOBAL or persons connected to them has any interest, direct or indirect, in the Adjudication proceedings.

Further announcement on the material development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 2 June 2023.