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Ash Sharqiyah Development cancels SAR 28.5m deal

Ash Sharqiyah Development cancels SAR 28.5m deal
No negative financial impact will result from the termination
SHARQIYAH DEV
6060
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Riyadh – Mubasher: Ash Sharqiyah Development on Wednesday has terminated a contract worth SAR 28.5 million for supplying fresh milk.

The two-year contract has been effective since 1 January 2016, according to a bourse statement issued on Wednesday.

The deal was cancelled due to the customer's failure to comply with the terms of the contract. 

“The contract stipulated submittal of purchase orders, as none were received for a period of six consecutive months which is deemed a breach of contract,” according to the bourse filing.

Asharqiyah noted that it will reserve its rights of taking legal procedures. 

It added that no negative financial impact will result from the termination.