E.A. Technique (M) Berhad (“the Company”) refers to the announcements dated 29 May 2019, 5 December 2019 and 12 November 2020 made by the Company in respect of:

(a)          The Adjudication Decision dated 27 May 2019 (“the 1st Adjudication Decision”) delivered by the Adjudicator in the adjudication proceedings commenced by Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”) against the Company, where the net sum of USD21,520,006.38 was awarded to MMHE with interest at the rate of 1.5% per month and cumulative costs of RM309,113.38.

(b)          The Adjudication Decision dated 4 December 2019 (“the 2nd Adjudication Decision”) delivered by the Adjudicator in the adjudication proceedings commenced by MMHE against the Company, where the sum of USD6,066,995.71 was awarded to MMHE with interest at the rate of 5% per annum and cumulative costs of RM204,556.69.

(c)           The Final Award dated 10 November 2020 (“the Final Award”) delivered by the Arbitral Tribunal in the arbitration proceedings commenced by the Company against MMHE, where USD29,520,172.65 and costs of RM4,686,398.16 were awarded to MMHE with interest at the rate of 5% per annum.

By Order of the High Court (ex-parte) dated 15 February 2021, the Final Award has been recognised as binding and MMHE has been granted permission to enforce the Final Award as a judgment of the High Court in terms of the Final Award pursuant to Section 38 of the Arbitration Act 2005 (“the Judgment”).

The Board of Directors of the Company wish to announce that on 8 March 2021, the Company and MMHE have executed a Settlement Agreement (“the Settlement Agreement”).

The terms of the settlement include, amongst others, the following:

(a)          The parties have agreed, without admission of liability, to settle the disputes and differences that have arisen between themselves.

(b)          The Company has agreed to pay and MMHE has agreed to accept the sum of USD25,500,000.00 (“the Settlement Sum”) as full and final settlement of the disputes between the parties, including MMHE’s rights under the 1st Adjudication Decision, the 2nd Adjudication Decision and the Final Award.

(c)           MMHE’s acceptance of the Settlement Sum is subject to MMHE’s rights to enforce and/or execute the Judgment, which is the full sum awarded in the Final Award, less all payments made in the event the Company commits defaults under the Settlement Agreement and fails to remedy the same.

(d)          The parties have also agreed to withdraw and/or discontinue the court proceedings filed in respect of the 1st Adjudication Decision, the 2nd Adjudication Decision and the Final Award.

Further announcements will be made in respect of any material development thereof.

This announcement is dated 8 March 2021.