JAKS informed Bursa KL on 26th March that at the case management of the civil suit between JAKS Resources Berhad and three parties, namely Perbadanan Urus Air Selangor Berhad, Syarikat Bekalan Air Selangor Sdn Bhd and the State Government of Selangor, held on 25th March 2010, the Kuala Lumpur High Court adjourned the matter to 5 April 2010 for mention to ascertain whether the matter can proceed by way of mediation.
Well, it looks like the first and second defendants refuses to resolve matters through mediation. As such,the High Court has fixed 10 April for case management.
What do you think will happen if the civil suit is to be settled through mediation? Will the outcome benefit JAKS?
I guess there are strengths and weaknesses on both sides as to the arguments of the issues at stake in this civil suit. My take is all parties will benefit in one way or the other. I think JAKS which is the aggrieved plaintiff will stand to gain.
If the former agreement for the supply contract for re-piping is considered valid in substance, then JAKS will stand to gain at least from the remedy viewpoint which can bring in extraordinary profit to its current cash position.
Assuming that this contract indeed subsists, JAKS can also use the supply contract as a gambit to win concessions from the 3 parties. As the State Government is now a Pakatan Rakyat Government and no longer the BN Government which defaulted on the supply contract, I think many things will be possible through mediation with the government of the day.
Now that mediation is history, let us watch how the trial proceeds on this long-standing civil suit.
Meanwhile, looking at the share price of JAKS these days gives one a feeling of hope. As other projects which JAKS is involved in like the project in Trengganu and China will start up very soon, it is quite easy to see that barring unforeseen circumstances, JAKS share price may just touch its par price of RM1.00 or go beyond that very soon.
The Pahang-Selangor Water Transfer Project which will yet be another booster for JAKS in 2010 began today and should have some speculative effects on the price of JAKS from tomorrow.(7 April 2010)
So, do watch out for JAKS,won't you?
No comments:
Post a Comment