Intria Shares slump

Intria's shares have slumped from 86p to less than 4p in the last year, leading one Malaysian stockbroker to the view that "Intria looks unstable".

Malaysian group Mekar Ida-man, which owns a 50.1 per cent stake in Intria has gone into receivership after defaulting on loans in Malaysian ringitts worth £80 million, together with a further £3 million-worth of dollar loans.

In addition, Intria has loaned £29 million to Mekar, thought to be on an unsecured basis.

"Intria is desperate for cash," said the Malaysian source. "On 24 July it announced a property sale but at a loss of £17 million.

"Most of the new infrastructure projects in Malaysia have stopped but Intria should make a trading profit thanks to the Penang Bridge. Opened in 1986, it is fairly well used. When Intria bought this from Mekar Idaman it came with a profit guarantee so that should income fall below a certain level, Mekar would provide compensation. This guarantee is no longer enforceable."