FARLIM

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MATERIAL LITIGATION FARLIM GROUP (MALAYSIA) BHD. IPOH HIGH COURT NOMBOR GUAMAN : AA-22NCvC-43-07/2020 BETWEEN FARLIM GROUP (MALAYSIA) BHD. (PLAINTIFF) AND FOUR OTHERS (DEFENDANTS) WRIT OF SUMMONS

FARLIM GROUP (MALAYSIA) BHD

Type Announcement
Subject MATERIAL LITIGATION
Description
FARLIM GROUP (MALAYSIA) BHD.
IPOH HIGH COURT NOMBOR GUAMAN : AA-22NCvC-43-07/2020 BETWEEN FARLIM GROUP (MALAYSIA) BHD. (PLAINTIFF) AND FOUR OTHERS (DEFENDANTS)
WRIT OF SUMMONS

Farlim Group (Malaysia) Bhd (hereinafter referred to as “FGMB”) had, through its solicitors, served a Writ of Summons on 5 August 2020 on SBG Land Sdn Bhd.  In addition, FGMB, through its solicitors, is in the process of serving a Writ of Summons on Man Hoe Holdings Sdn Bhd, Meranti Tiga Sdn Bhd and MSHK Engineering Sdn Bhd (hereinafter, together with SBG Land Sdn Bhd, referred to as “the Defendants”).

 

The Defendants had jointly sold and FGMB had purchased, pursuant to a Share Sale Agreement dated 15 November 2016 (hereinafter referred to as “the Agreement”), one million (1,000,000) ordinary shares (hereinafter referred to as “the shares”) in a company known as MH Consortium Sdn Bhd (currently known as Farlim (Perak) Sdn Bhd) (hereinafter referred to as “the Company”) for a total purchase consideration of RM2,579,000.00 (hereinafter referred to as “the Purchase Price”).  In addition to the Purchase Price, FGMB also agreed to discharge certain shareholders’ advances, trade creditors and other creditors and accruals owed by the Company totalling RM16,157,399.69. 

 

The Company’s main assets are certain lands measuring approximately 96.8 acres situated in Kampar, Negeri Perak (hereinafter referred to as "the Lands”).  FGMB’s obligation to purchase the shares in the Company was subject to, amongst other things, the removal and the relocation of all Tenaga Nasional Berhad (TNB) high tension cables situated on the Lands at the Defendants’ expense.

 

Pursuant to the terms of the Agreement, the Defendants have also given certain undertakings to FGMB relating to obtaining approval for and completion of the relocation of the TNB high tension cables (hereinafter referred to as “the Undertaking Letter”).

 

In breach of the terms of the Agreement and the Undertaking Letter, the Defendants have failed and/or neglected to obtain TNB’s approval on or before the agreed deadline and these breaches have resulted in losses to FGMB.

 

As such, FGMB is claiming losses and damages from the Defendants on a joint and several basis for an aggregate amount of RM24,549,080.04.

 

FGMB is of the view that no immediate financial and operational impact on FGMB arises from the Writ of Summons.                 

 

This announcement is dated 13 August 2020.                        

 






Announcement Info

Company Name FARLIM GROUP (MALAYSIA) BHD
Stock Name FARLIM
Date Announced 13 Aug 2020
Category General Announcement for PLC
Reference Number GA1-13082020-00048