Further to the announcements made by the Company on 3 September 2013, 12 September 2013, 7 November 2013 and 29 April 2014, the Board of Directors of High-5 wishes to announce that the Company and its subsidiary company, Standard Confectionery Sdn Bhd (“SCSB”), have on 17 October 2014 filed the Suit in High Court of Malaya at Kuala Lumpur against the 1^st Defendant, the 2^nd Defendant, Dato’ Tan Han Kook (“the 3^rd Defendant”) and Dato’ Ahmad Rodzi Pawanteh (“the 4^th Defendant”) in relation to land held under Geran 285748, Lot No. 62048, Pekan Baru Hicom, Daerah Petaling, Selangor, measuring approximately 59,336 square meters together with a factory complex, with the address Lot 72, Persiaran Jubli Perak, Seksyen 21, 40000 Selangor Darul Ehsan (“the Property”).

Under the Suit, the Plaintiffs are seeking the following from the court:

(a)  A declaration that the title of the 2nd Defendant to the Property is defeasible by virtue of Sections 340(1), (2) and (3) of the National Land Code 1965;

(b)  A declaration that the statutory lease dated 6 October 2006 registered at the Land Registry via presentation no. 11855/2007 pertaining to the Property (“the Registered Lease”) is defeasible by virtue of Section 340(1) of the National Land Code 1965;

(c)  An order that the transfer of the Property via an instrument of transfer registered vide presentation no. 11854/2007 of the registered proprietorship of the Property from SCSB to the 1st Defendant (“the 1st Transfer”), the transfer of the Property via an instrument of transfer registered vide presentation no. 13468/2008 of the registered proprietorship of the Property from the 1st Defendant to the 2nd Defendant (“the 2nd Transfer”), the lease agreement dated 17 May 2006 between the Company and the 1st Defendant pertaining to the Property (“the Lease Agreement”), the Novation Agreement dated 26 September 2007 between the 1st and 2nd Defendants and the Company pertaining to the Lease Agreement (“the Novation Agreement”), and the supplemental agreement dated 7 May 2013 between the 2nd Defendant and the Company (“the Supplemental Lease Agreement”), be all declared  null and void and be set aside;

(d)  A declaration that the sale and purchase agreement dated 17 May 2006 between SCSB and the 1st Defendant as trustee for the common fund for a sale and leaseback (“the SPA”) and the said lease back arrangement is fraudulent and illegal and against public policy;

(e)  The SPA, the Lease Agreement, the Novation Agreement and the Supplemental Lease Agreement be declared null and void and unenforceable;

(f)  A consequential order that the Registrar of Land Titles be directed pursuant to Section 417 of the National Land Code 1965 to cancel the 1st Transfer, the 2nd Transfer and the Registered Lease;

(g)  General, aggravated and punitive damages against the 3rd Defendant and 4th Defendant; and

(h)  Such further and other orders as the honourable court deems fit. 

The Board will make such further required announcements on any material developments in the Suit as and when they arise. 

This announcement is dated 17 October 2014.