Reference is made to the Company’s announcement dated 30 April 2019 relating to a claim for RM 8,455,810 brought against the Company by Ayer Itam Properties Sdn. Bhd. (“AIPSB”).  In 2013 AIPSB entered into a Sale and Purchase Agreement in respect of certain pieces of land sold by the Company to AIPSB.  In essence, AIPSB is alleging that the purchase consideration paid over to the Company was wrongly calculated as it included certain pieces of land which was in fact excluded from the transfer, thereby resulting in an overpayment to the Company.  

On 7 March 2023 the Penang High Court ruled in favour of AIPSB. The Penang High Court has also awarded in favour of AIPSB interest at the rate of 5%, on the judgement sum commencing from 24 April 2019 and costs of RM 40,000.

The Company has on 8 March 2023 filed an appeal against the Penang High Court’s decision at the Court of Appeal.  Pending the appeal process running its course, the Penang High Court’s award in favour of AIPSB for damages and costs will be stayed.  In the event that the Company is ultimately found to be liable to AIPSB, it is expected that this will have a material impact on the financial results of the Company.

The Company will make further announcements to Bursa Malaysia Securities Berhad as and when there are further material developments.

This announcement is dated 8 March 2023.