KUALA LUMPUR (Jan 16): Builder Kanger International Bhd has cancelled a March 2021 proposal to award a RM478 million contract to Vegetta Champion Sdn Bhd to carry out the construction of the foundation and main building works of a serviced apartment project in Genting Highlands, Pahang.

Kanger, however, did not specify why.

In a filing with Bursa Malaysia on Tuesday, Kanger said its wholly owned subsidiary Kanger Ventures Sdn Bhd and Vegetta Champion have mutually agreed to terminate the collaboration agreement between the two parties.

In March 2021, Kanger Ventures had issued a letter of intent (LOI) to Vegetta Champion, appointing Vegetta Champion as the main contractor for the foundation and main building works of the project, which features two blocks of serviced apartments and public amenities.

Under the LOI, Vegetta Champion was supposed to carry out the construction of the foundation and main building works of the Genting Highlands project, while Kanger Ventures would be responsible for its entire project management, financials and administration.

Kanger shares closed 0.5 sen or 7.69% higher at seven sen on Tuesday, giving it a market capitalisation of RM47.7 million. The stock has risen 75% over the past one year.