Protasco Berhad (“Protasco” or the “Company”) wishes to announce that by a Coal Supply Agreement dated 4/2/2013 (the “Agreement”), Protasco Trading Sdn Bhd (“PTSB”), a subsidiary of Protasco had entered into an agreement to undertake coal trades with PT Goldchild Integritas Abadi (“Goldchild”), an Indonesian company.

Pursuant to the terms of the Agreement (and to facilitate coal purchases), a USD5,161,290 deposit (“Deposit”) was paid by PTSB to Goldchild. The Deposit is to be deducted in stages against future coal trades.

Reference is now made to the announcements dated 22/9/2014 and 24/9/2014 wherein the Company had announced that it had filed a legal suit against one PT Anglo Slavic Utama, an Indonesian company and two (2) directors of the Company, namely Tey Por Yee and Ooi Kock Aun (the “1^st Legal Proceeding”).

Subsequent to the 1^st Legal Proceeding, the Company has further uncovered that both Ooi Kock Aun and Tey Por Yee have interest in Goldchild. This interest was not disclosed by Ooi Kock Aun to the Company. Ooi Kock Aun is a director of the Company at the time of the entry into the Agreement between PTSB and Goldchild and is obliged to disclose his personal interest in the transaction. Based on legal advice received, Ooi Kock Aun’s failure to make a disclosure of his personal interest contravenes Section 132E of the Companies Act, 1965 therefore rendering the Agreement void and Ooi Kock Aun personally liable to account to the Company for any gain which he had made directly or indirectly from the Agreement and/or to indemnify the company for losses and/or damages suffered

Protasco wishes to announce that Protasco has today filed a legal suit at the Shah Alam High Court against Goldchild and Ooi Kock Aun. Protasco’s claim against Goldchild and Ooi Kock Aun is inter alia for a declaration that the Agreement is void and in breach of the Companies Act, 1965 and for a refund of the Deposit paid. 

Protasco wishes to state that the aforesaid legal proceeding has no significant immediate adverse impact to the current financial position of Protasco.