We refer to our announcement dated 5 March 2020 in relation to the Writ of Summons and Statement of Claim served on TH Heavy Engineering Berhad (“THHE” or the “Company”) and its 80% subsidiary, Floatech (L) Ltd (“Floatech (L)") by  Globalmariner Offshore Services Sdn Bhd (“GMOS”) and THHE’s quarterly announcements dated 31 March 2021, 24 November 2020, 28 August 2020 and 30 June 2020.

The Board of Directors of THHE wishes to inform that THHE’s and Floatech (L)’s applications to strike out GMOS’s claim was successful with cost of RM25,000 to be paid to THHE.

Briefly, GMOS had initiated this suit against the Company as well as Floatech (L), a number of past and present directors of the Company, Yinson-related companies and one of its directors, alleging that, amongst others:-

i) It was induced into purchasing a 20% stake in Floatech (L);
ii) THHE and Floatech (L) created fraudulent accounts to mislead the Court on the viability of THHE’s Scheme of Arrangement in 2018;
iii) The Defendants conspired to defraud and/or misrepresent the Court and GMOS;
iv) It was misrepresented that the JX Nippon EPCIC would be novated to Floatech (L), instead of Yinson; and
v) THHE had been unjustly enriched as a result of the above.

In May 2020, THHE, Floatech (L) and other defendants had applied to Kuala Lumpur High Court for orders to strike out GMOS’s claim. The position THHE, Floatech (L) and the other defendants  had taken was that most, if not all, of the allegations raised through GMOS’s claim are either issues that should and could have been raised or are issues that have already been raised, ventilated and adjudicated upon by the Court in previous proceedings (KLHC Suit No. WA-22NCVC-588-09/2016 & KLHC OS No. WA-24NCC-42-02/2017) and the ongoing proceedings (KLHC Suit No. WA-22NCC-374- 11/2016).

This announcement is dated 31 March 2021.