Wah Seong shares up 3.92% despite potential suit faced by HK unit

PETALING JAYA: Wah Seong Corp Bhd’s share price rose 3.92% this morning despite news of its indirect unit facing a €3.9 million (RM19.1 million) claim from Bauhuis BV.
At 11.10am, its share price was 3.92% or 4 sen higher at RM1.06 with a total of 2.57 million shares traded. The stock rose 5.7% or 5.5 sen to close at RM1.02 yesterday on some 4.64 million shares traded.
Wah Seong told Bursa Malaysia yesterday that its indirect wholly owned subsidiary Wasco Coatings HK Ltd (WCHKL) had received a request for arbitration from Solomon Taylor & Shaw, the solicitor acting for Bauhuis, a company incorporated in the Netherlands.
The €3.9 million claim is in relation to its contract for the supply of pipe coating equipment to be installed and commissioned by Bauhuis at a pipe manufacturing plant in Regina, Canada.
Wah Seong is of the view that Bauhuis’ claim can be legally defended and WCHKL will be filing a response to the request for arbitration within 28 days from Nov 8 as well as a counter-claim against Bauhuis.