04 June 2015
Muscat: Share trading of Galfar Engineering and Contracting Company, Oman's biggest contracting firm, was suspended for the last three days, pending clarification regarding the company's settlement/compensation offer from Muscat Municipality for Muscat Expressway and Central Corridor projects. This is in the larger interest of investors.
Galfar shares were traded on the bourse briefly on Wednesday, but it was suspended within a short span of time.
Galfar Engineering came out with two disclosure statements on June 1 and 2. But the Muscat Securities Market (MSM), after getting instruction from the market regulator Capital Market Authority, has advised Galfar to urgently disclose additional and detailed information on the amount already recognised in the books against which this settlement offer has been received. Galfar Engineering and Contracting on June 2 said that it has received a letter from Muscat Municipality offering to settle OMR29.9 million as a full and final settlement against the total claims raised by Galfar to Muscat Municipality relating to the expressway and corridor projects.
Based on an independent technical and legal opinion, the (Galfar) board has decided not to accept this settlement and pursue other options on the way forward, the company said in a disclosure statement. The compensation offer was for cost escalation while building the Muscat Expressway.
When contacted, a spokesperson of the company did not comment.
© Times of Oman 2015