PACC Offshore (POSH): Served a legal claim by Kensteel Engineering involving $7.1m, ~9.4% of FY14 net profit or ~23% of Maybank-KE's FY15 earnings forecast.
The dispute involves an agreement between POSH and Kensteel, where the former would purchase a property from Kensteel, subject to JTC approval.
However, the JTC application was subsequently rejected and Kensteel still believes it is entitled to forfeit the deposit of $3.8m, as well as an additional $3.3m attributed to damages resulting from the non-completion.
POSH intends to defend the claim vigorously and will make further announcement when appropriate.
Maybank-KE's last call was a Buy with TP of $0.65.