KUALA LUMPUR (April 17): Practice Note 17 company R&A Telecommunication Group Bhd (R&A) has launched a lawsuit against its former substantial shareholder Datuk Tey Por Yee, seeking to recover RM4.2 million which was paid to a company called Info Genetic Sdn Bhd.

In a filing with Bursa Malaysia today, R&A said its wholly-owned subsidiary R&A Telecommunication Sdn Bhd (RASB) has filed a writ of summons and statement of claim at the Kuala Lumpur High Court against four individuals — Tey, Lim Chye Guan, Lim Wei Mun, Mohd Ablynisyam Abdullah and Dayangku Shafawati Pengiran Bahrin — and two companies Nexgram Holdings Bhd and Info Genetic for the claims.

The group said Tey had on April 1, 2014, instructed Chye Guan and Wei Mun, as R&A's bank authorised signatories, to pay a sum of RM4.2 million to RASB.

Subsequently, Chye Guan, who was also the sole bank authorised signatory for RASB, paid out RM4.2 million to Info Genetic despite both Wei Mun and him being well aware that there was no reason for such payment, added R&A.

“The total sum of RM4.2 million was subsequently caused to be paid out by Chye Guan, the sole bank authorised signatory of RASB, to Info Genetic when it was known to both Chye Guan and Wei Mun that there was no reason for RASB to pay any moneys to Info Genetic and Info Genetic has no reason to receive any money from RASB,” it said.

Both R&A and RASB are also claiming interest and costs against the defendants.

Tey first emerged as substantial shareholder in R&A on Oct 1, 2014, after Nexgram bought a 22.75% stake or 200 million shares in the telecommunication turnkey solution provider.

However, after a series of share disposals, Nexgram’s shareholding in R&A fell to 6.83% or 66.01 million shares.

Tey ceased to be R&A’s substantial shareholder on Feb 2 last year after he disposed of the bulk of his shareholding in Nexgram as well.

R&A’s legal action comes on the heels of Ire-Tex Corp Bhd’s suit against Tey earlier this month, which is claiming for a larger sum of RM11.5 million from the 41-year-old businessman.

Tey was formerly director and substantial shareholder of the corrugated packaging services provider as well. He was appointed as a director of Ire-Tex in May 2014, but resigned in February 2015.

He remained as a substantial shareholder with a 22.96% stake until Feb 24 last year, after selling his entire shareholding to his younger brother Tey Por Chen. The transacted price was not disclosed.

Por Chen eventually sold off all of the shares in several transactions and ceased to be substantial shareholder on Dec 5 last year.

R&A’s shares have been suspended from trading since September last year, while Ire-Tex’ share price gained one sen or 4.35% to close at 24 sen today, giving it a market capitalisation of RM33.06 million.

Nexgram, on the other hand, traded unchanged at 4.5 sen today, valuing it at RM84.7 million.