We refer to our announcement on 11 November 2015 in relation to the Proposed Sale of 100% Equity Interest in Bestari.  Unless otherwise indicated, the abbreviations used herein are the same as those previously defined in the announcement dated 11 November 2015.

MIB filed a Writ of Summons and Statement of Claim against Mula, Bestari, Spanstead and Seri Ehsan (“Bestari Group”) on 30 January 2015 claiming for, amongst others, the following declarations:-

a)  the Settlement Agreement is automatically terminated on 15 December 2013;

b)  the Full Outstanding Amount of RM301,506,429 as at 30 June 2012 together with interest thereon is due and owing by Bestari Group;

c)  the Power of Attorney is valid, binding and subsisting; and

d)  Mula and/or Seri Ehsan and their agents have no right to deal with the Land.

Mula and Bestari Group then filed their Defence and Counterclaim on 9 February 2015, contending, amongst others, that the terms in the Settlement Agreement were varied by reason of a collateral agreement between the parties which resulted in the Settlement Agreement continuing to be valid and binding until the sale of the Land is completed. Their counterclaim is:-

a)  that the Settlement Agreement continued to be valid and binding until the sale of the Land is completed;

b)  for an injunction to compel MIB to withdraw all encumbrances from the Land; and

c)  for damages to be assessed.

Mula and Bestari Group also included Mulpha Ventures Sdn Bhd (a wholly-owned subsidiary of MIB and a licensed moneylending company) (“MVSB”) as a party to the counterclaim, whereby they counterclaimed for a declaration that a loan of RM42.2 million plus interest granted by MVSB to Bestari is also to be repaid out of the proceeds of the sale of the Land.

MIB’s solicitors have advised that MIB has a strong case based on contemporaneous documentary evidence and the express terms of the documents with Mula and Bestari Group. Accordingly, it will be forcefully argued that the counterclaim filed by Mula and Bestari Group is without merit.

We will make further announcements on any material development in this action.

This announcement is dated 12 November 2015.