The Board of Directors of Techbase wishes to announce that the Company and its subsidiaries, namely Honsin Apparel Sdn Bhd, HiQ Media (Malaysia) Sdn Bhd and Laser Capital Holdings Sdn Bhd were served on 12 July 2024 with a Writ of Summons and a Statement of Claim both dated 4 July 2024. The Company was named as the 4th defendant (“4th Defendant”), Honsin Apparel Sdn Bhd was named as the 2nd defendant (“2nd Defendant”), HiQ Media (Malaysia) Sdn Bhd was named as the 3rd Defendant (“3rd Defendant”) and Laser Capital Holdings Sdn Bhd was named as the 14th defendant (“14th Defendant”). The action was commenced by Mah Sau Cheong (“Plaintiff”) through his solicitors, Messrs. Alfred Lai & Partners.

Based on the Statement of Claim, it was alleged that the 2nd, 3rd, 4th and 14th Defendants together with others are persons acting in concert pursuant to section 216 of the Capital Markets and Services Act 2007 (“CMSA”) and Rule 4.03 of the Rules on Take-Overs, Mergers and Compulsory Acquisitions and they have allegedly conspired with others to breach section 176 of CMSA and section 202 of CMSA and to injure and cause harm to all the other shareholders of South Malaysia Industries Berhad, the 1st Defendant, including the Plaintiff.

The relief claimed by the Plaintiff are as below:-

1. The 2nd to 30th Defendants jointly and severally pay to the Plaintiff a sum of RM24,084,036.00 for the deprivation of the Plaintiff’s opportunity to receive a mandatory general offer for the Plaintiff’s shares in the 1st Defendant (16,056,024 ordinary shares) at the price of RM1.500 per share.
2. Alternatively, the 2nd to 30th Defendants jointly and severally pay for the Plaintiff a sum of RM17,019,385.44 for the deprivation of the Plaintiff’s opportunity to receive a mandatory general offer for the Plaintiff’s shares in the 1st Defendant (16,056,024 ordinary shares) at the price of RM1.060 per share.
3. Alternatively, the 2nd to 30th Defendants jointly and severally pay to the Plaintiff general damages to be assessed by the High Court of Malaya at Johor Bahru (“Court”) for the deprivation of the Plaintiff’s opportunity to receive a mandatory general offer for the Plaintiff’s shares in the 1st Defendant (16,056,024 ordinary shares).
4. Alternatively, the 2nd to 30th Defendants jointly and severally pay to the Plaintiff general damages to be assessed by the Court for the losses suffered by the Plaintiff due to the depressed mandatory general offer price in the event that the 2nd to 30th Defendants were ordered to make a mandatory general offer to all the other remaining shareholders of the 1st Defendant, including the Plaintiff.
5. Costs to be paid by the 2nd to 30th Defendants jointly and severally to the Plaintiff.
6. Such further and/or other relief or reliefs that the Court deems fit and proper.

The case management has been fixed on 13 August 2024.

The Company is seeking the necessary legal advice from its solicitors to defend against the claim. The Company does not expect any financial and operational impact arising from the claim pending the final decision from the Court, save for the legal fees, disbursements and any other incidental costs.

Further announcements on the material development of the above matter will be made from time to time, where necessary.

This announcement is dated 15 July 2024.