KUALA LUMPUR (Dec 24): Prolintas Infra Business Trust (KL:PLINTAS) said it has settled its dispute with KL-Kuala Selangor Expressway Bhd (Latar) over a cost-sharing agreement, for an undisclosed amount.
"We are pleased to announce that the parties have reached a settlement arrangement in relation to the arbitration award dated Nov 7, 2024," the trust said in a bourse filing on Tuesday.
"A consent order has been recorded in court to formalise the settlement. As such, the matter has been resolved," it added.
The filing did not disclose details of the settlement arrangement.
Prolintas said the settlement will not have any material implications, reiterating that its major unitholder, Projek Lintasan Kota Holdings Sdn Bhd, has agreed to indemnify trustee manager Prolintas Managers Sdn Bhd against any losses incurred from the arbitration case.
The Edge reported on Monday that Latar, previously known as Lebuhraya Assamjawa Taman Rimba Bhd, had filed a lawsuit in the High Court to enforce the arbitration award totalling RM46.13 million.
Prolintas comprises four highway assets in the Klang Valley, namely Lingkaran-Lebuhraya Kajang (SILK), the Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning-Shah Alam (LKSA), and Ampang-Kuala Lumpur Elevated Highway (AKLEH).
The dispute with Latar concerned a cost-sharing agreement involving a plan to link the GCE with Latar via the Kuang System Interchange and the North-South Expressway (NSE) to enable vehicles on both expressways to move freely into the NSE.
In the arbitration, GCE Co — a wholly owned subsidiary of the trust and the toll concessionaire of GCE — claimed RM80.1 million from Latar. Latar in turn claimed RM74.9 million from GCE Co.
The arbitrator allowed both claims, and after both awarded amounts were set off, GCE Co was to pay RM46.13 million to Latar.
Prolintas units ended 1.5 sen or 1.51% lower at 98 sen on Tuesday, valuing the trust at RM1.08 billion.