KUALA LUMPUR: ATA IMS Bhd’s shares hit a limit down in early trade Friday following the termination of three contracts from Dyson.
The electronics manufacturing services (EMS) provider tumbled 36.59%, or 30 sen to 52 sen with over 15 million shares traded.
ATA has received notice of termination of the contracts by Dyson Operations Pte Ltd and Dyson Manufacturing Sdn Bhd.
The three contracts are the contract manufacturing agreement dated Oct 15, 2020, between Dyson Operations and ATA Industrial (M) Sdn Bhd (ATAIM), the agreement for the supply of goods and services dated March 1, 2013, between Dyson Manufacturing and ATAIM, and the framework agreement for the supply of goods (tooling) dated June 17, 2009, between Dyson Manufacturing and ATAIM.
The company also said it will continue to manufacture and supply for Dyson until June 1, 2022, and that its board was looking into the validity of Dyson’s termination notice.
The company noted that prior to the receipt of the notices of termination, it had been in discussions with Dyson regarding the findings of the audit.
“The company further notes it had taken immediate steps upon being notified of the summary of the audit to engage Dyson in discussions and to engage professional advisers to assist the company to review, verify and validate the findings of the audit.
“Notwithstanding the receipt of the notices of termination, the company will continue to actively look into the findings of the audit,” ATA said.