SCIB unit not fully withdrawn Awana lawsuit
Instead, the company explained that legal reliefs previously sought under a separate suit had been consolidated into a broader legal action, now referred to as the main suit.
"The amended statement of claim, filed on April 18, 2025, integrates the RM19.72 million recovery claim into the main suit to streamline proceedings and facilitate a more efficient litigation process.
"SCIB affirms that the discontinuation of the separate action does not reflect a withdrawal or abandonment of the company's claim.
"Rather, it represents a strategic legal approach to pursue the matter more effectively under a single consolidated suit," it said in a statement.
This is contrary to the impression conveyed in a media report on April 23.
The company assures its shareholders and stakeholders that it remains fully committed to recovering the RM19.72 million from Awana.
Its managing director Ku Chong Hong said
the consolidation of claims into a single legal action is a procedural refinement that enables SCIB to pursue its rights more efficiently and with greater legal clarity.
"There has been no compromise to the substance or seriousness of our position. We will continue to act in the best interest of the company and ensure transparency throughout this process," he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
27-06-2025
- Borneo Post
SCIB launches rights issue, capital reduction to strengthen financial position
Chong Loong Men. KUCHING (June 27): Sarawak Consolidated Industries Berhad (SCIB) has proposed a rights issue to raise up to RM53.45 million, alongside a share capital reduction to address accumulated losses and strengthen its financial footing. In a statement yesterday, SCIB said the rights issue will involve up to 763.62 million new ordinary shares, accompanied by an equal number of free detachable warrants. It said the offer is on the basis of one rights share for every existing SCIB share held with one free warrant for each rights share subscribed. The indicative issue price is RM0.07 per rights share. Executive Chairman and major shareholder Datuk Chong Loong Men has committed to subscribing to 143 million rights shares. The group said the corporate exercise is aimed at strengthening its financial position, optimising its capital structure, and supporting future expansion. Proceeds from the rights issue will go towards constructing a new factory, acquiring machinery, repaying part of the group's bank borrowings, meeting working capital needs, and covering expenses related to the corporate proposals. 'The fresh capital injection will reinforce SCIB's liquidity and operational capacity, particularly in its core manufacturing and EPCC (engineering, procurement, construction and commissioning) segments, as it scales participation in major infrastructure projects across East Malaysia and beyond,' the group said. At the same time, SCIB has proposed a reduction of its issued share capital by RM110 million under Section 117 of the Companies Act 2016. The proposed capital reduction, according to the group, will help to rationalise its financial position by cancelling part of its issued share capital that is lost or unrepresented by assets. This move is expected to reflect the actual value of the group's assets and financial position more accurately. Chong said the rights issue with warrants allows shareholders to take part directly in SCIB's growth path while reinforcing its capital base. He said the capital reduction also shows the company's commitment to transparency and restoring its balance sheet strength. 'We are laying a solid foundation for long-term growth and operational scalability, especially as we align ourselves with the robust infrastructure agenda in Sarawak and the wider region. 'These corporate initiatives will allow us to be more agile financially and create sustainable value for all stakeholders,' he said. A circular with full details will be issued to shareholders ahead of the upcoming extraordinary general meeting. corporate news Sarawak Consolidated Industries Berhad
The Star
26-06-2025
- The Star
SCIB seeks to raise RM53mil with rights issue
PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) is undertaking a corporate exercise comprising a renounceable rights issue with free detachable warrants that is expected to raise proceeds of up to RM53.45mil. Concomitantly, the company has proposed to reduce its issued share capital by RM110mil. This will allow the company to rationalise its financial position and reflect more accurately the value of its underlying assets and finances. The proposed rights issue – with an indicative issue price of seven sen per share – will entail the issuance of up to 763.62 million new shares with up to 763.62 million free detachable warrants on the basis of one rights share for every one existing SCIB share held, and one free warrant for every one rights share subscribed. SCIB said the funds raised will be allocated towards the construction of a new factory, acquisition of factory machinery, partial repayment of bank borrowings, working capital requirements, and expenses related to the proposed corporate exercises.
The Star
26-06-2025
- The Star
SCIB undertakes rights issue with warrants, capital reduction
KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) is undertaking a corporate exercise comprising a renounceable rights issue with free detachable warrants that is expected to raise proceeds of up to RM53.45mil. Concomitantly, the company has proposed to reduce its issued share capital by RM110mil. It said this will allow the company to rationalise and reflects its financial position and reflect more accurately the value of its underlying assets and finances. The proposed rights issue - with an indicative issue price of seven sen per share - will entail the issuance of up to 763.62 million new shares with up to 763.62 million free detachable warrants on the basis of one rights share for every one existing SCIB share held, and one free warrant for every one rights share subscribed. SCIB said the funds raised will be allocated towards the construction of a new factory, acquisition of factory machinery, partial repayment of bank borrowings, working capital requirements, and expenses related to the proposed corporate exercises. "The fresh capital injection will reinforce SCIB's liquidity and operational capacity, particularly in its core manufacturing and engineering, procurement, construction and commissioning (EPCC) segments, as it scales participation in major infrastructure projects across East Malaysia and beyond," it said in a statement. SCIB executive chairman and major shareholder Datuk Chong Loon Men said he is undertaking to subscribe to 143 million rights shares as a demonstration of his continued confidence in the company's prospects "We are laying a solid foundation for long-term growth and operational scalability, especially as we align ourselves with the robust infrastructure agenda in Sarawak and the wider region. "These corporate initiatives will allow us to be more agile financially and create sustainable value for all stakeholders," he said .
