1. Introduction

The Board of Directors of the Company wishes to announce that Deleum Primera, a 60% owned subsidiary of the Company was, on 24 August 2020, served with a sealed Writ of Summons together with a Statement of Claim dated 21 August 2020, filed by SSSB at the Kuala Lumpur High Court (“High Court Suit”); and an unsealed Writ of Summons together with a Statement of Claim dated 21 August 2020, filed by SSSB at the Kuala Lumpur Sessions Court (“Sessions Court Suit”), both through its solicitors, Messrs. Saiful, Roger & Co.

a. The High Court Suit

SSSB has alleged inter alia, that Deleum Primera had unlawfully terminated the agreement entered into between them for the sale and delivery of certain equipment by SSSB to Deleum Primera, wherein there had been severe and protracted delay by SSSB.

The Orders and/or relief sought by SSSB against Deleum Primera, are as follows:

i. A Declaration that the termination of the Cargo Handling Equipment Project dated 11.10.2018 by Deleum Primera, was unlawful;

ii. Judgment for the sum of RM1,400,500.00, being the total sum from invoices allegedly outstanding;

iii. The sum of  RM874,500.00,  being damages allegedly suffered due to Deleum Primera’s refusal to  accept delivery ;

iv. General damages;

v. Late payment charges of 1.5% per month, from the date of the Writ of Summons until full settlement of all outstanding invoices;

vi. Interest at the rate of 5% per annum on the Judgment sum from the date of Judgment until full settlement;

vii. Costs; and

viii. Any other relief deemed fit by the High Court.

b. The Sessions Court Suit

SSSB has alleged inter alia, that Deleum Primera had failed, refused and /or neglected to pay SSSB for services rendered by SSSB in respect of several projects on which it was appointed by Deleum Primera to perform.

The Orders and/or relief sought by SSSB against Deleum Primera, are as follows:

i. Judgment for the alleged amount of RM488,277.43;

ii. Late payment charges of 1.5% per month from 15.7.2020 until full settlement;

iii. Interest at the rate of 5% per annum on the Judgement sum from the date of Judgment until full settlement;

iv. Costs; and

v. Any other relief deemed fit by the Sessions Court.

2. Financial and Operational Impact

Both Suits are not expected to have any material financial and operational impact on the Group. Deleum Primera is not a major subsidiary of the Company. 

3. Proposed steps to be taken

Deleum Primera is seeking the necessary legal advice from external legal counsel with regards to the matters.

Further announcement on the development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 25 August 2020.