SIME

2.400

(%)

MATERIAL LITIGATION CCCC Tianjin Dredging Co., Ltd. v Weifang Port Services Co., Ltd. and Weifang Port Group Co., Ltd.

SIME DARBY BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
CCCC Tianjin Dredging Co., Ltd. v Weifang Port Services Co., Ltd. and Weifang Port Group Co., Ltd.

Further to the announcements dated 19 November 2018, 29 July 2019 and 14 January 2020, Sime Darby Berhad (“Sime Darby”) wishes to announce that on 11 September 2020, a settlement had been reached between CCCC Tianjin Dredging Co., Ltd. (“Plaintiff”) and Weifang Port Services Co., Ltd. (“WPS”) and Weifang Port Group Co., Ltd. (collectively, the “Defendants”).

The settlement was achieved with the participation of the Weifang Binhai Government via its wholly-owned subsidiaries, Weifang Binhai Seaport Economic Zone Development Service Co., Ltd. (“WBD”) and Weifang Binhai Tourism Group Co., Ltd. (“WBT”). A settlement agreement was signed between the Plaintiff, the Defendants, WBD and WBT (“Settlement Agreement”) wherein it was agreed that the total sum payable to the Plaintiff shall be RMB728 million (equivalent to approximately RM445 million) which includes the outstanding sum of RMB711 million, reduced late payment interest of RMB10 million after waiver of the remaining RMB158 million and other legal costs of RMB7.2 million (collectively, the “Repayment Sum”).

The Repayment Sum will be settled in three instalments. The first payment of RMB100 million was paid on 18 September 2020, the second payment of RMB300 million is to be paid before 20 October 2020 and the remaining RMB328 million is to be paid before 10 December 2020. The funds to be used to settle the Repayment Sum will be supported by the Weifang Binhai Government through WBD and WBT.

If parties default in paying the instalments, the Plaintiff has the right to apply to the court to resume enforcement proceedings against WPS, WBD and WBT. In addition to the Repayment Sum, the waived interest of RMB158 million and any interest incurred after 1 August 2020 will also need to be paid.

The outstanding sum of RMB711 million and the late payment interest have been accrued in the accounts of WPS as at 30 June 2020.

Sime Darby will make further announcements on any material development on this matter from time to time.

This announcement is dated 22 September 2020.






Announcement Info

Company Name SIME DARBY BERHAD
Stock Name SIME
Date Announced 22 Sep 2020
Category General Announcement for PLC
Reference Number GA1-21092020-00016