Reference is made to the Company’s announcements made on 7 November 2014, 18 November 2014, 19 November 2014, 2 March 2015, 28 May 2015, 9 December 2015, 18 December 2015, 22 May 2018, 28 November 2019, 27 May 2020, 19 June 2020, 4 September 2020, 24 December 2020 and  22 April 2021 respectively.

The Board of Directors of Permaju wishes to update that the Arbitrator published Partial Award No. 3 as follows:-

1. Hardie Development Sdn Bhd ("Hardie") to pay the Claimant the net principal sum of RM2,600,724.04 as the amount of outstanding Professional fees; 

2. Hardie shall pay the Claimant a Pre-Award interest of RM1,943,374.40;

3. Hardie shall bear in full the cost of award for Partial Award No.1 and Partial Award No. 2 and Partial Award No. 3 tax by the Tribunal as RM132,000.00; 

4. Cost in the reference for Hardie and Permaju Arbitration shall be reserved until the final Award;

5. Any sum awarded by the Tribunal shall be payable within four weeks from the date of the said Award, failing this David Shen is entitled to impose a further interest at a rate of 5% per annum.

The Claimant's Solicitor also filed an application for the enforcement of Partial Award No. 3 at the Kota Kinabalu High Court vide Originating Summons No. BKI-24NCC(ARB)-4/6-2021 whereas Hardie's Solicitor filed an application to set aside Partial Award No. 3 vide Originating Summons No. BKI-24NCC(ARB)-3/6-2021.

The Judge has directed that the application filed by Hardie to set aside Partial Award No. 3 will be heard first and if allowed, then the Claimant's application would fall. The Court had fixed Hardie's application for hearing on 14 September 2021. 

Notwithstanding the foregoing, as a result of the Partial Award No. 3, Hardie's Solicitor commenced negotiation with the Claimant's Solicitor.

In respect of David Shen's claim against Permaju for inducing Hardie to breach their contract with David Shen I-Tan, the Arbitrator vacated the hearing on 6,7,8 and 9 April 2021 pending negotiations in respect of Partial Award No. 3. In view of the negotiations, there are no hearing dates in respect of the Claimant's claim against Permaju. 

Any further material development on the matter will be announced to Bursa Malaysia Securities Berhad accordingly.

This announcement is dated 12 August 2021.