Bursa Announcement

Bursa Announcement

Date : 03 March 2021

MATERIAL LITIGATION AEON CO. (M) BHD. (AEON OR COMPANY) Betanaz Properties Sdn. Bhd. Kuala Lumpur High Court Civil Suit against the Company

AEON CO. (M) BHD

Type Announcement
Subject MATERIAL LITIGATION
Description
AEON CO. (M) BHD. (AEON OR COMPANY)  Betanaz Properties Sdn. Bhd. Kuala Lumpur High Court Civil Suit against the Company

The Board of Directors of the Company wishes to announce that the Company has on 2 March 2021 received a legal suit from Betanaz Properties Sdn. Bhd. [Company No. 201201025590 (1010080-V)] (“the Plaintiff”) in the High Court of Malaya in Kuala Lumpur.

 

In the legal suit against the Company, the Plaintiff has alleged that the Company did not comply with its obligations under the Tenancy Agreement dated 24 August 2017 (“Tenancy Agreement”) to fulfill the conditions precedent under the Tenancy Agreement and had wrongfully terminated the Tenancy Agreement. Therefore, the Plaintiff is seeking for, among others, the following reliefs:

  1. Rental payment payable to the Plaintiff for the tenancy period between 1 April 2020 to 17 December 2021 and for the initial term of ten (10) years of the lease amounting to a total sum of RM59,302,302.97; or
  2. Expenditure incurred by the Plaintiff for the project, including but not limited to site clearance and earthworks, consultancy fees, financing costs and other incidental costs arising from the banking facilities and others costs amounting to RM18,936,207.76.

Contrary to the Plaintiff’s claims, the Tenancy Agreement had been terminated by the Company on 26 October 2020 on the grounds that both the Company and the Plaintiff did not fulfill the conditions precedent of the Tenancy Agreement. The Company has sought legal counsel and was advised that the abovementioned general damages sought by the Plaintiff in the amounts of RM59,302,302.97 or RM18,936,207.76 are contradictory to the Rules of Court as the same should not have been quantified by the Plaintiff as if it were special damages.

 

The Company will take necessary actions to defend against the Plaintiff’s legal suit and will initiate counterclaim against the Plaintiff, which is 51% owned by Ahmad Zaki Resources Berhad, to recover any losses suffered by the Company.

 

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 2021.

 

If there is any further updates or development on the above suit, further announcement will be made in due course.

 

This announcement is dated 3 March 2021.






Announcement Info

Company Name AEON CO. (M) BHD
Stock Name AEON
Date Announced 03 Mar 2021
Category General Announcement for PLC
Reference Number GA1-03032021-00081


Back