PARKSON

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OTHERS Announcement by Parkson Retail Asia Limited - Update on Legal Proceedings involving Parkson Vietnam Co., Ltd.

PARKSON HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
Announcement by Parkson Retail Asia Limited - Update on Legal Proceedings involving Parkson Vietnam Co., Ltd.
We refer to the announcements made by Parkson Holdings Berhad ("PHB" or the "Company") on 11 December 2020, 18 January 2021 and 29 January 2021 in relation to the announcements made to the Singapore Exchange Securities Trading Limited ("SGX-ST") by Parkson Retail Asia Limited ("PRA"), a 67.96% owned subsidiary of the Company listed on the SGX-ST, in respect of the legal proceedings involving Parkson Vietnam Co., Ltd. ("PVC"), an indirect wholly-owned subsidiary of PRA, and the landlord of PVC's leased premises in Da Nang, Vietnam ("Premises") ("Landlord") and the updates on the legal proceedings in relation thereto (collectively, the "Announcements").

Unless otherwise stated, the terms used throughout this announcement shall have the same meaning as defined in the Announcements.

On 25 November 2021, PRA had announced that PVC had on 19 November 2021 received a letter from the VIAC notifying PVC on the second revised claim amount submitted by the Landlord to the VIAC, mainly to include an additional compensation claim amount for rent (calculated from 15 January 2021 to 23 November 2021) ("Additional Claim Amount") in relation to PVC's alleged failure to return the possession of the Premises to the Landlord by 14 January 2021, which has brought the total claim amount to VND85.7 billion (approximately S$5.2 million or RM16.1 million ("Final Claim Amount").

Following consultation with its legal counsel in Vietnam, PVC is of the view that the Landlord should not be entitled to the Additional Claim Amount, and PVC had disputed the Final Claim Amount vigorously at the hearing before the VIAC on 23 November 2021. The decision of the VIAC ("VIAC Decision") is currently expected to be delivered in December 2021.

PRA is presently unable to determine the exact financial impact of the ongoing dispute with the Landlord on the financial position of the PRA Group for the current financial period ending 31 December 2021 ("FPE2021") as it will be dependent on the outcome of the VIAC Decision. Notwithstanding that a portion of the Final Claim Amount had been accrued in the financial statements of PVC for the FPE2021, in the event PVC is required to settle the Final Claim Amount in full, it will likely result in an adverse impact on the financial position of the PRA Group for the FPE2021.

PRA will make further announcements as and when there are any material developments.

In the event PVC is required to settle the Final Claim Amount, it would not have a material impact on the earnings of the PHB Group for the 18-month financial period ending 31 December 2021 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 30 June 2020.



Please refer attachment below.

Attachments

PRA-Announcement.pdf
186.3 kB



Announcement Info

Company Name PARKSON HOLDINGS BERHAD
Stock Name PARKSON
Date Announced 25 Nov 2021
Category General Announcement for PLC
Reference Number GA1-25112021-00091