WE DESIGN LOGISTICS

Reference is made to the announcements released on 6 August 2015 and 11 August 2015 by Century.

The Board of Directors of Century wishes to announce that Century Total Logistics Sdn Bhd (“CTL” or “Defendant”) has on 15 October 2015 been served with a Writ of Summons together with the Statement of Claim (hereinafter refered to as "Writ of Summons") in relation to a claim filed by Nestlé Products Sdn Bhd (“Nestle” or “Plaintiff”), through a firm of solicitors acting on its behalf.

Details of the claim and circumstances leading to filing of the Writ of Summons by Nestle against CTL

The Plaintiff alleges that it had engaged CTL as its logistics and supply chain service provider and that CTL had failed and/or neglected to exercise due care, diligence and skill in undertaking its scope of work for outbound logistics services as set out in Nestle’s request for quotation.

The Plaintiff alleges that as a result of the alleged failure and/or breach, it had suffered losses totaling RM 21,649,381.64. 

The particulars of the claim are as follows:

i. Air Freight costs                                                   RM5,584,049.00

ii. Detention, demurrage & other related costs            RM8,847,069.32

iii. Nestle staff mobilisation costs                              RM2,707,151.00

iv. Stock write off/Goods destroyed                            RM4,511,112.32

                                                                              ------------------------

               Total                                                        RM21,649,381.64

                                                                            ==============

The Plaintiff seeks against CTL the following:

(a) The sum of RM21,649,381.64;

(b) In addition to and/or in the alternative to (a) above, CTL do pay the Plaintiff general damages to be assessed by the Court;

(c) Interest on the sums adjudged to be payable by the Defendant to the Plaintiff at the rate of 5% per annum from the date of the filing of the Writ of Summons to the date of full payment;

(d) Costs; and

(e) Such further or other relief as the Court may deem fit and proper to grant.

The Company and CTL’s position are that the Plaintiff’s case is baseless and unsubstantiated. CTL will be contesting the claim. The Court has fixed the case management at 9.00 am on 27 October 2015. 

Financial and Operational Impacts       

In the unlikely event that Nestle's demand materialise, the claim sum of RM21,649,381.64 amounts to approximately 8.0% of the net assets of the Century Group as at 31 December 2014. There will not be any material operational impact of the claim on the Century Group.

• CTL’s counter-claim against Nestle, Nestlé Manufacturing (Malaysia) Sdn Bhd, Nestlé Asean (Malaysia) Sdn Bhd and Cereal Partners (Malaysia) Sdn Bhd

Meanwhile, CTL has filed 4 claims respectively against Nestle, Nestlé Manufacturing (Malaysia) Sdn Bhd, Nestlé Asean (Malaysia) Sdn Bhd and Cereal Partners (Malaysia) Sdn Bhd for outstanding sums totaling RM 853,997.95 being amount payable for services rendered for interim assignments that had been undertaken by CTL.

Further, CTL has also filed an additional claim against Nestle for the sum of RM8,443,384.75, being damages and loss of profit resulting from misrepresentation by Nestle. 

The Company will be making further announcements as and when necessary.

This announcement is dated 16 October 2015.