Reference is made to Note B8 (Changes in Material Litigation) of our announcement dated 5 March 2021 on the quarterly report on consolidated results for the financial period ended 31 December 2020, pertaining to the Arbitration Claim.

The Board of Directors of Dancomech wishes to announce that DESB, a wholly-owned subsidiary of the Company, had on 25 March 2021, via its solicitors collected a copy of the final award of the Arbitration Claim dated 1 March 2021 (“Final Award”) from the arbitrator’s office.

The Final Award contains, among others, the following:

(i)        That DESB shall pay to the Claimant the sum of RM485,064.67;

(ii)       That DESB shall pay interest at the rate of 5% simple interest per annum on the sum of RM485,064.67 from 12 December 2013 to the Claimant. Such interests will continue to run until the actual realisation of the said payments by DESB to the Claimant;

(iii)      That DESB shall bear and pay the Claimant’s costs in the arbitration in the sum of RM284,184.50;

(iv)      That DESB shall pay interest at the rate of 5% simple interest per annum on the sum of RM284,184.50 from the date of the Final Award, i.e. 1 March 2021, to the Claimant. Such interests will continue to run until the actual realisation of the said payments by DESB to the Claimant;

(v)       That DESB shall pay and bear the costs of the arbitrator’s fees and expenses. If the Claimant has already paid the whole or any part of such costs, DESB shall reimburse the Claimant accordingly;

(vi)      That DESB shall pay interest at the rate of 5% simple interest per annum on the outstanding sums already paid by the Claimant as in item (v) above in terms of costs of the arbitrator’s fees and expenses from the date of the Final Award, i.e. 1 March 2021, to the Claimant. Such interests will continue to run until the actual realisation of the said reimbursed payment by DESB to the Claimant; and

(vii)     That all other requests and claims of the Claimant and DESB are rejected.

DESB is currently seeking the advice of its solicitors on the matter. In this regard, any further material development of the matter will be announced in due course.

This announcement is dated 26 March 2021.