Theta Edge seeks RM11.4 mil damages from Tenaga

by **Cals** Fri 26 Sep 2014, 08:33

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Thursday, 25 September 2014 20:48

KUALA LUMPUR (Sept 25): Loss-making information and communications technology player Theta Edge Bhd has filed a lawsuit against Tenaga Nasional Bhd for RM11.39 million plus an 8% annual interest until settlement, after the state-owned utility player suspended the project executed by Theta Edge, alleging that the work was defective.

Theta Edge said should it be successful in its claim against Tenaga, there would be a positive financial contribution to its earnings per share and net asset per share for the financial year ending Dec 31, 2014 (FY14).

In a filing with Bursa Malaysia, Theta Edge said its wholly owned subsidiary Impianas Sdn Bhd had on Sept 17, filed a civil suit in the High Court of Malaya in Shah Alam against Tenaga.

The sealed copy of the writ of summon was served on Tenaga today, to claim the payment sum of RM11.39 million, an 8% annual interest calculated on a daily basis on the payment sum starting from Nov 07, 2008 until the date of full settlement, and the sum of RM2.55 million.

Additionally, Impianas is also seeking general and exemplary damages to be assessed by the court, and interest at the rate of 4% per annum on any judgement sum from the date of the writ of summons’ filing until full settlement, costs, and such further and other relief as the court sees fit.

Theta Edge alleged that Tenaga had breached an agreement dated May 22, 2007, between Impianas and the utility giant for the former to supply remote meter reading (RMR) system low voltage for large power consumers, which was valued at RM57.44 million.

However, Theta Edge said Tenaga suspended the project on Nov 07, 2008, on grounds of non-satisfactory performance, “solely alleging that the RMR boxes which have been installed by Impianas were defective”.

“Impianas had taken every effort to remedy the situation, including taking additional initiatives and costs to assist in areas out of its scope on factors which were also contributing to the performance, as required by Tenaga,” said Theta Edge.

“Impianas is claiming for the remaining balance of the contract sum of RM11.39 million,” Theta Edge added.

Theta Edge nudged up by half a sen or 1.18% to close at 43 sen, after seeing a meagre 7,000 shares traded. It had a market capitalisation of RM43.19 million.