KUALA LUMPUR (Jan 13): FABER GROUP BHD [] shares retreated on Friday on concerns over the increasing legal disputes the company is facing involving its projects in the Middle East.
On Thursday, the company said that its subsidiary Faber Ltd Liability Company was facing a suit from sub-contractor, Sweet Home Technical Works Ltd Liability Company, for services provided for housing projects in Abu Dhabi.
At 9.25am, Faber slipped three sen to RM1.79 with 49,000 shares done.
Faber on Thursday said the statement of claim dated Jan 10 was for AED13.12 million (RM11.21 million), which Faber LLC is disputing.
Meanwhile, RHB Research Institute downgraded Faber to underperform from market perform but maintained its sum-of- parts (SOP) fair value of RM1.53.
It said on Friday that following two earlier lawsuits, the company now faces a third claim by Sweet HomeTechnical Works for earlier contract works in UAE amounting to approximately RM11.2 million.
“Still too early to determine the impact of the recent lawsuits but we are increasingly concerned that Faber could face more lawsuits, going forward,” it said.
“SOP fair value estimate of RM1.53 kept unchanged. However, recent run-up in Faber’s share price on growing expectations of the government concession renewal means that it is no longer in line with our expected market return. Downgrade to Underperform from market perform,” it said.
On Thursday, the company said that its subsidiary Faber Ltd Liability Company was facing a suit from sub-contractor, Sweet Home Technical Works Ltd Liability Company, for services provided for housing projects in Abu Dhabi.
At 9.25am, Faber slipped three sen to RM1.79 with 49,000 shares done.
Faber on Thursday said the statement of claim dated Jan 10 was for AED13.12 million (RM11.21 million), which Faber LLC is disputing.
Meanwhile, RHB Research Institute downgraded Faber to underperform from market perform but maintained its sum-of- parts (SOP) fair value of RM1.53.
It said on Friday that following two earlier lawsuits, the company now faces a third claim by Sweet HomeTechnical Works for earlier contract works in UAE amounting to approximately RM11.2 million.
“Still too early to determine the impact of the recent lawsuits but we are increasingly concerned that Faber could face more lawsuits, going forward,” it said.
“SOP fair value estimate of RM1.53 kept unchanged. However, recent run-up in Faber’s share price on growing expectations of the government concession renewal means that it is no longer in line with our expected market return. Downgrade to Underperform from market perform,” it said.
