Reference is made to the Material Litigation announcements released on 29 February 2016, 3 March 2016, 1 November 2016, 8 May 2017, 25 May 2017, 29 June 2017,  31 July 2017, 8 August 2017, 2 February 2018, 19 December 2018 and 17 January 2019.

On 31 October 2016, DWZ Entities was served with a writ and a statement of claim in respect of the Civil Action commenced by PGB. The trial for Johor Bahru Civil Suit No. JA-22NCVC-204-10/2016, between Petronas Gas Berhad and DWZ Entities, has progressed on 11.3.2018, 20.5.2018, 6.6.2018, 18.6.2018, 19.6.2018, 20.6.2018 and 21.6.2018.

The decision of the Johor Bahru High Court on 19.12.2018 has held DWZ Entities to be jointly and severally liable to PGB for their pleaded claim for unlawful entry into PGB’s land, tort of trespass, nuisance and negligence for the discharge of foreign effluent causing damage to PGB’s pipeline. The Court has issued declarations to that effect and has issued an injunction against the Defendants’ their servants and agents from entering the Plaintiff’s land, constructing or installing or causing to be constructed or installing any piping or structure on the Plaintiff’s land and to injunct the DWZ Entities from releasing or discharging any effluents to the Plaintiff’s land.

The High Court has ordered damages against DWZ Entities in the amount of RM 3,226,243.00 together with interest at the rate of 5% per annum from the date of loss till the date of full payment and costs in the amount of RM 100,000.00.

DWZ Entities have appealed against the High Court decision dated 19.12.2018 on both liability and quantum. A Notice of Appeal to the Court of Appeal, Putrajaya, was filed by solicitors for DWZ Entities on 16.1.2019. The hearing of the appeal was originally fixed for 11th November 2019.

Parties have through negotiations arrived at a settlement, which has been formalized and signed. The salient terms are as follows:

• DWZ Entities are to pay the sum of RM 3,150,000.00 in 24 equal consecutive monthly instalments of RM131,250.00 each month by way of post-dated cheques to PGB
• Save the declaration and the injunction order in the Judgment  which continues, each Party has no further claim against the other in respect of the Judgment
• In the event of default of any payment or instalment, PGB will be at liberty to treat the total amount payable under the Judgment minus all sums paid by DWZ Entities, if any, as immediately due and owing and to enforce the same by execution
• Parties agree that this is a final settlement of all claims, demands, actions and suits of whatsoever nature relating to and/or in connection with the Dispute

This announcement is dated 2 December 2019.