ZELAN SHARES UP AS DISPUTE ENDS

ZELAN SHARES UP AS DISPUTE ENDS

ZELAN EYES 11MP JOBS
The Star Online 
Business News – Thursday April 17, 2014

PETALING JAYA: Zelan Bhd’s share price climbed 1.5 sen, or 6.2%, yesterday to close at 25.5 sen on optimism that its dispute settlement with Middle-East company Meena Holdings LLC may aid its turnaround plans.

The company had announced on Tuesday that it had entered into a second supplementary agreement (SSA) with Meena Holdings, the owner of the Meena Plaza mixed-use development project in Abu Dhabi in the United Arab Emirates which Zelan was supposed to construct. Meena Holdings had, in November 2012, issued a 14-day notice to Zelan’s unit Zelan Holdings (M) Sdn Bhd to terminate the contract and liquidate Zelan Holdings’ performance bond, which Zelan subsequently challenged.

In a filing with Bursa Malaysia, Zelan said under the SSA, both parties had agreed to resume work on the project in accordance with the original contract dated April 1, 2008.