Bursa Announcement

References are made to the Company’s announcements on 3 March 2021, 30 March 2021 and 22 October 2021 pertaining to the legal suit received from Betanaz Properties Sdn. Bhd. [Company No. 201201025590 (1010080-V)] (“the Plaintiff”) in the High Court of Malaya in Kuala Lumpur.

With regards to the Company’s announcement on 30 March 2021 whereby the Company, as the plaintiff, had announced the filing of a counterclaim against Betanaz Properties Sdn. Bhd. as the first defendant, and Ahmad Zaki Resources Berhad [Company No. 199701017271 (432768-X)] as the second defendant (“Main Suit”), the Company wishes to further inform that the Company had subsequently received an application by Ahmad Zaki Resources Berhad (“AZRB”) to strike out the Company’s counterclaim against AZRB.

In furtherance to the Company’s announcement on 22 October 2021, the High Court judge had allowed AZRB’s application to strike out the Company’s counterclaim against AZRB on the basis that the bridge across the Kuantan River, connecting Bandar Kuantan to Bandar Putra, Tanjung Lumpur (“Bridge”) was completed and the Company’s counterclaim is not sustainable.

Upon the advice of the Company’s legal counsel, the Company filed an appeal against the decision of the High Court to allow AZRB’s application to strike out the Company’s counterclaim against AZRB on 29 March 2021, on the basis that the Bridge was not completed on or before the expiry of the condition precedent period of the Tenancy Agreement dated 24 August 2017 and the Commercial Agreement dated 24 August 2017. The hearing for the appeal was fixed on 9 May 2022.

The Company wishes to announce that on 9 May 2022, pursuant to the Company’s appeal against the High Court’s decision to allow AZRB’s application to strike out the Company’s counterclaim against AZRB, the Court of Appeal has decided in favor of the Company and subsequently, AZRB will be reinstated as a party to the Company’s counterclaim as the second defendant in the trial for the Main Suit, which is fixed on 20 to 21 May 2024 and 13 to 14 June 2024.

At this juncture, the Board is unable to ascertain the financial impact to the Company pending the outcome of the legal suit. The legal suit is not expected to have any operational impact on the Company for the financial year ending 31 December 2022.

This announcement is dated 12 May 2022.