Reference is made to the Company's announcements on 3 March 2021, 30 March 2021, 22 October 2021, 12 May 2022, 18 December 2024, 8 January 2025, 22 January 2025 and 17 March 2026 pertaining to the legal suit received from Betanaz Properties Sdn. Bhd. [Company No. 201201025590 (1010080-V)] ("Betanaz") in the High Court of Malaya in Kuala Lumpur.
The Company wishes to announce that on 22 July 2026, the Court of Appeal upheld the High Court's decision dated 16 December 2024 as follows:
- Betanaz's alternative claim of RM18,678,255.27 together with interest was upheld.
- The Company's counterclaim against Betanaz and AZRB was dismissed.
- Betanaz's appeal against the dismissal of its claim for RM59,302,302.97 was dismissed.
- The Company was ordered to pay legal costs of RM60,000 to Betanaz and RM30,000 to AZRB, respectively, subject to allocatur at 4%.
- Betanaz was ordered to pay legal costs of RM50,000 to the Company, subject to allocatur at 4%.
The Court of Appeal further directed that the matter concerning damages arising from the ex parte injunction in relation to the Bank Guarantee sum of RM174,240.00 be referred back to the High Court for assessment. The judgment sum of RM18,678,255.27 plus interest of RM3,643,538.11 as at 22 January 2025 held in the stakeholder account of Betanaz's solicitors should then be released in satisfaction of the judgment in favour of Betanaz.
Following the Court of Appeal's decision, the Company made an oral stay of execution pending its intended application for leave to appeal to the Federal Court. The Court of Appeal directed that the application for a stay of execution be made by way of a formal application.
Accordingly, the Company intends to file an application for leave to appeal against the Court of Appeal's decision to the Federal Court, together with a formal application for a stay of execution of the Court of Appeal's decision.
The financial impact will be a cash outflow relating to the interest amount on the judgment sum from 23 January 2025 onwards and the legal costs ordered by the Court of Appeal. The amount of damages, if any, arising from the ex parte injunction in respect of the Bank Guarantee sum of RM174,240.00 cannot be determined at this stage and will depend on the losses, if any, established by Betanaz during the assessment of damages. There is no operational impact on the Company.
The Company will make the necessary announcements should there be any further material developments on the above suit.
This announcement is dated 23 July 2026.
