MATERIAL LITIGATION Claim by Redberry Sdn Bhd ("Redberry") against Utusan Melayu (Malaysia) Berhad ("Utusan")
Claim by Redberry Sdn Bhd ("Redberry") against Utusan Melayu (Malaysia) Berhad ("Utusan")
We refer to the announcements made on 6 September 2018 (Reference No. : GA1-06092018-00059) and 14 February 2019 (Reference No. : GA1-14022019-00024).
The Board of Directors of Ancom wishes to announce that Redberry and Utusan (collectively referred as the “Parties”) have on 08 April 2019 entered into a Settlement Agreement (“Settlement Agreement”) to settle the summary judgement obtained by Redberry against Utusan on 11 February 2019 pursuant to the KL Suit (“Summary Judgement”) for the sum of RM8.5 million (“Judgement Sum”) and the counter-claim for damages and exemplary damages of RM48.32 million, appeal against the Summary Judgement and application for stay of execution proceedings by Utusan.
The salient terms of the Settlement Agreement, amongst others, are:
(a) RM482,194.44 shall be set off against the Judgement Sum, being the settlement of the amount owing by Redberry to Utusan;
(b) Utusan shall procure Utusan Airtime Sdn Bhd (“UASB”), a wholly-owned subsidiary of Utusan, to transfer all its shares in Titanium Compass Sdn. Bhd. (“TCSB”) representing 20% of the issued and paid up capital of TCSB free from encumbrances, valued at RM6,000,000.00, which shall be set off against the Judgement Sum. Pending the approval of the relevant authorities for the transfer (if any), Utusan shall procure UASB to hold the TCSB shares in trust for Redberry and shall execute a Deed of Trust and Limited Power of Attorney in favour of Redberry in such form that is acceptable and satisfactory to Redberry; and
(c) Redberry shall bear the agreed portion of the loss suffered by Utusan of RM2,017,805.56 in connection to the previous supply agreement by setting off that amount against the Judgement Sum.
Upon the signing of the Settlement Agreement, Redberry undertakes not to execute the Summary Judgement against Utusan and Utusan shall within five (5) days from the execution of the Settlement Agreement, withdraw its counter-claim, appeal against the Summary Judgement and stay of execution with no liberty to file afresh.
This announcement is dated 08 April 2019.
|Company Name||ANCOM BERHAD|
|Date Announced||08 Apr 2019|
|Category||General Announcement for PLC|