1. Introduction

The Board of Directors of the Company wishes to announce that its subsidiary, EMSB, via its solicitors, Messrs Raja, Darryl and Loh, had on 30 March 2021 received a Writ and Statement of Claim both dated 25 March 2021 from Messrs Arbain & Co., the solicitors acting for MMSB. 

2. Particulars of the Claim in the Statement of Claim

By way of, among others, a Letter of Acceptance dated 8 November 2019, EMSB and MMSB entered into a contract described as the “Provision of Comprehensive Maintenance Services for Radiology, Radiotherapy, Imaging and Ultrasound Equipment at Northern Region Hospitals under the Ministry of Health Malaysia (MOH) for Edgenta Mediserve Sdn Bhd” (“Contract”). 

On 18 May 2020, EMSB served a Notice of Rescission of the Contract on MMSB (“Notice of Rescission”). 

In this regard, MMSB claims that EMSB has breached the Contract by, among others:

a. prematurely and unlawfully terminating the Contract by way of the Notice of Rescission;

b. failing, refusing and/or neglecting to fulfil its obligations under the Contract and resolve the matter complained by failing to conclude the outcome of the Dispute Resolution Committee; and

c. acting in bad faith by failing, refusing and/or neglecting to take all necessary steps to submit all the relevant documents to the Ministry of Health to ensure that MMSB’s appointment under the Contract is accepted. 

MMSB is seeking for among others the following relief from EMSB:

a. a declaration that the Notice of Rescission dated 18 May 2020 issued by EMSB is invalid, null and void, and of no legal effect;

b. a declaration that EMSB has breached the Contract by preventing MMSB to commence the execution of the Contract and/or not taking the steps necessary to facilitate MMSB’s appointment as EMSB’s subcontractor under the Contract;

c. an order for specific performance for EMSB to reinstate, enforce and execute the Contract for a new term of 3 years with an extension of a further 2 years; and 

d. alternatively, an order for damages amounting to RM22,023,999.53.

3. Financial and Operational Impact on UEM Edgenta and its subsidiaries (the “Group”)

Save for the amount of damages claimed by MMSB together with cost, interest, and other financial relief, the suit is not expected to have other material financial and operational impact to the Group.

4. Proposed steps to be taken

The Civil Suit is fixed for case management on 26 April 2021 by way of e-Review before the Court Registrar. EMSB’s solicitor is of the opinion that MMSB’s claim can be legally defended.  EMSB will take all necessary steps to robustly defend MMSB’s legal suit and will be filing a defence to MMSB’s claim.

The Company will make further announcements on any material developments of the matter from time to time. 

This announcement is dated 31 March 2021.