ACER Acertec

    RNS Number : 1261A
  Acertec PLC
  29 July 2008
   

    Acertec plc 

    The following announcement was made today by BRC Asia Limited a subsidiary of  Acertec plc.  Acertec own 70.28% of BRC Asia Limited
which is listed on the  Singapore Stock Exchange.


    BRC ASIA LIMITED
    Incorporated in the Republic of Singapore
    Company Registration No. 193800054G  

    LITIGATION

    The Board of Directors of the Company would like to announce that the Company has on 29 July 2008 filed an originating summons with the
High Court of Singapore (the "Court") in relation to the supply of steel products to Sembawang Engineers & Constructors Pte Ltd ("SECPL").

    Background

    SECPL is one of the contractors engaged for the substructure work package relating to the Integrated Resort on Sentosa Island for
Resorts World At Sentosa Pte Ltd (the "Project").

    In April 2007, SECPL requested the Company for a quotation for the supply of steel products for the Project. The Company submitted a
quotation (the "Quotation") to SECPL for the supply of various reinforcing steel products (the "Products") which was valid up to 25 May
2007. SECPL did not accept such quotation but instead sent a letter to the Company purporting to set out their intention to appoint the
Company as SECPL's sub-contractor for the fabrication, supply and delivery of the Products, subject to a formal sub-contract being signed.
The Company was not agreeable to the terms set out SECPL's letter.

    On 13 August 2007, SECPL purported to award the sub-contract to the Company. As the terms and conditions of such award were not
agreeable to the Company, the Company and SECPL commenced negotiations on the sub-contract.

    Notwithstanding that there was no contract between the parties, the Company was prepared to supply the Products pending the execution of
the contract.  As at 30 June 2008, the Company has supplied about S$39m of the Products to SECPL.  Since then the Company has continued to
supply the Products to SECPL pending the Court's ruling on the Company's application as described below.


    The Company's Application

    The Company is seeking a ruling from the Court that :-

                (a)    there is no binding agreement or contract with SECPL;

    (b)    the Company is not obliged to continue to supply  the Products to SECPL; and 

    (c)    in respect of all and any steel products requested by SECPL and supplied by the Company, SECPL should pay the Company for such
Products on a quantum meruit basis at a fair and reasonable market rate.

    Alternatively, the Company is seeking a ruling that the only valid contract is based on the terms of the Quotation.

    The Company has made the necessary adjustments to provide for the full costs of the Products supplied and yet to be supplied to SECPL in
the income statement for the half year ended 30 June 2008. In the event that any award is granted by the Court in relation to payment by
SECPL for the products on a quantum meruit basis, such award would have a positive impact on the results of the Company. Shareholders and
investors may wish to refer to the Company's unaudited half year financial statement and dividend announcement for the 6 months ended 30
June 2008 released on 29 July 2008 for further details,.


    By Order of the Board,



    John David Sword
    Chairman
    29 July 2008

This information is provided by RNS
The company news service from the London Stock Exchange
 
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