We refer  to the updates via our latest quarterly announcement submitted on 26 February 2020 regarding the legal proceedings instituted against PT Diwangkara Holiday Villa Bali (“PT Diwangkara”)(an indirect subsidiary of the Company which was given the right to operate and manage Diwangkara Holiday Villa Beach Resort & Spa Bali (“Hotel”)) arising from a claim dated 14 April 2015 made by PT Diwangkara Jaya Makmur (as “PT Makmur”) against PT Diwangkara  and CV Telabah Nasional Traiding Company , and the counterclaim by PT Diwangkara against PT Makmur. The District Court of Denpasar’s (“Court”) verdict on 3 May 2016 was upheld by the Supreme Court Republic of Indonesia which rejected the petition for cassation from PT Makmur.

Principally, the Court held that the action by PT Makmur in taking over the hotel, office building and management of the Hotel prior to the expiry of the lease under Deed No. 38 and No. 39 was unlawful and ordered PT Makmur to return the operations of the Hotel and to pay material and immaterial losses of Rp.5,384,507,763 (Five Billion Three Hundred Eighty-Four Million Five Hundred and Seven Thousand Seven Hundred Sixty Three Rupiah) to PT Diwangkara, plus court costs incurred of Rp.1,706,000 (One Million Seven Hundred and Six Thousand Rupiah).

Prior to the outcome of the aforesaid cassation proceedings, PT Diwangkara filed a lawsuit dated 22 May 2019 in Denpasar District Court against the heirs of the Hotel’s owner, shareholders of CV Telabah Nasional Traiding Company and PT Diwangkara Jaya Makmur (“the Defendants”) for breach of contract.

As informed by the lawyers, the Defendants intend to settle the aforesaid two cases (“Cases”) through a settlement agreement, therefore, on 19 March 2020, PT Diwangkara entered into a Settlement Agreement (“Settlement Agreement”) with the Defendants with regard to the Cases with a cash settlement sum of Rp.6,000,000,000 (Six Billion Rupiah) to PT Diwangkara which is enumerated as follows:

i.             Rp.5,450,000,000,- (Five Billion Four Hundred Fifty Million Rupiah) being the full and final settlement sum for the Cases; and

ii.            Rp.550,000,000,- (Five Hundred Fifty Million Rupiah) being the legal fees, costs and other incidental expenses  incurred in regard to the  Settlement Agreement

(hereinafter referred to as “Settlement”).

The Group is not expected to suffer a material adverse operational impact following the Settlement. The Settlement is expected to result in a gain of about RM0.52 million to ASB Group or an increase in earnings per share of 0.056 sen based on the current total number of shares in issue and will not have a material impact on the net assets of ASB Group. The Settlement will not have any effect on the share capital and substantial shareholders’ shareholdings of the Company as the Settlement does not involve any issuance of shares or other securities of the Company.

None of the directors or major shareholders of ASB or persons connected with them has any interest, direct or indirect, in the Settlement.

This announcement is dated 19 March 2020.