Dubai: 19 June 2012: Depa Limited (ticker DEPA) (‘Depa’ or ‘Company’) announced today that its joint venture company with Linder AG, Lindner Depa (Depa 51%, Lindner 49%), has had its contract performance bond (AED 96 million) and advance payment guarantee (AED 81 million) with Doha International Airport pulled.
The performance bond and advance payment guarantee encashment is due to Lindner Depa's refusal to accept new non-favourable contract terms and conditions, including dropping all extension-of-time costs and acceleration costs, after being denied full access to the project site to perform its contract scope of work for the first nine months of this sixteen-month project. As a result of the delay, Lindner Depa has not been able to start all of its interior contracting work on site as planned and consequently, would not be able to meet its original contract completion date.
The contract, worth approximately AED 900 million, comprised the interior fit-out of all 17 lounges at the New Doha International Airport. The contract has not been terminated yet. The Company is in discussions with its lawyers in order to assess the situation and consider the way forward.
Whilst the New Doha International Airport project represented the largest project in the Company’s backlog, Depa is still working on over 200 projects across the Middle East, Africa and South East Asia representing over AED 3 billion in total.
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For further inquiries, please contact:
Depa Limited
Noor Sweid
Managing Director, Strategy
Tel: +971 4 224 3800
Brunswick Gulf Ltd
Rupert Young / Jade Mamarbachi
Tel: + 971 4 446 6270
Depa Limited is a leading interior contracting company in the Middle East, North Africa and Southeast Asia regions. Operating principally in the luxury fit-out industry, its main areas of business cover luxury hotels, infrastructure and public sector amenities such as hospitals and airports, high-end residential properties, retail outlets, as well as yachts. Depa is listed on the NASDAQ Dubai (ticker DEPA) and has Global Depositary Receipts on the regulated market for listed securities of the London Stock Exchange plc (ticker DEPA and DEPS).
The range of business activities performed by Depa comprises:
· Interior contracting : which focuses on luxury interior fit-out services, which include installation and finishing of floors, walls, ceilings, fixed joinery, panelling, wood-works, doors and frames;
· Manufacturing : which comprises a network of factories and joineries which produce customized furniture, fixtures and equipment (FF&E);
· Procurement : which involves the procurement of supplies and materials from third parties to support and complement Depa's interior contracting and manufacturing operations as well as third party procurement contracts for specific FF&E projects.
By integrating these services into a single package, Depa provides clients with comprehensive and customized interior contracting solutions.
With more than 8,000 employees worldwide, the company operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Syria, Libya, Morocco, India, Malaysia, Thailand, China, Singapore, UK, the Netherlands, and the United States. Through this network, Depa has successfully executed large and complex projects in over 20 countries including the Emirates Palace Hotel (Abu Dhabi), Four Seasons Hotel (India), Grand Hyatt (Malaysia), Trump International Hotel (Las Vegas), Tokyo Midtown (Japan), Museum of Islamic Arts (Qatar), Baku Flame (Azerbaijan) and Marina Bay Sands (Singapore).
