Graña Y Montero Signs MoU For $85 Mln Chile Contract; Ends Talks Regarding Maple

(RTTNews) - Peruvian engineering and construction company Graña y Montero S.A.A. (GRAM) late Monday announced that its Chilean subsidiary Vial y Vives - DSD S.A. has signed a Memorandum of Understanding with Samsung Engineering Chile, a Chilean Agency of Samsung Engineering Co., Ltd.

The MoU is for the project "Civil Works and Electromechanical Assembly of the Combined Cycle Power Plant" in the Kelar Combined Cycle Thermoelectric Central located in Mejillones, II Antofagasta Region, Chile.

This contract will have an execution period of 19 months and the amount of the project is $85.035 million plus sales tax.

The company noted that the project consists of performing structural excavations, foundations to insert and close perimeter, as well as the complete assembly, which includes structural, mechanical, piping and electrical assembly, in addition to instrumentation of both gas and steam turbines, as well as of the Balance of Plant.

Separately, the company announced the termination of discussions for share purchase of Maple Companies Limited. The announcement was in reference to the binding offer for the purchase of shares of Maple Companies Limited, presented to Maple Energy PLC by Graña y Montero together with Alcogroup S.A. from Belgium.

Both parties have decided by mutual agreement, to terminate the discussions in relation to the purchase of this company. Graña y Montero cited the impossibility to reach an agreement regarding the fulfillment of certain conditions precedent established applicable to the offer as the cause of termination of talks.

Maple Energy shares lost 28.21 percent on Monday in London to close at 3.50 pence.

Graña y Montero settled at $12.13, down 0.25 percent.