Sapura Resources assets at risk due to JV default, court told
KUALA LUMPUR : Public-listed entity Sapura Resources Berhad (SRB) defaulted on a joint venture agreement (JVA) in 2022, placing the company's assets at risk, Sapura Holdings Sdn Bhd (SHSB) director Shahriman Shamsuddin told the High Court today.
Testifying at the hearing of his petition to wind up SHSB, Shahriman acknowledged that SRB had breached the terms of the JVA by failing to meet a RM40 million cash call made by Impian Bebas Sdn Bhd.
Impian Bebas is a joint venture vehicle set up by SRB and KLCC Holdings Sdn Bhd (KLCCH) to develop Permata Square, a 52-storey tower in the KL city centre – the Sapura group's flagship building.
Cross-examined by S Rabindra, counsel for elder brother Shahril – a respondent in the petition – Shahriman conceded that a default would have carried 'onerous' consequences.
Rabindra: If SRB defaults under the JVA, does KLCCH have the right to acquire SRB's properties at a 20% discount?
Shahriman: Yes.
Rabindra: And no one wanted that to happen, as indicated in your letter to KLCCH dated Aug 1, 2022?
Shahriman: Yes.
To avoid the consequences of a default, Shahriman said he issued the Aug 1 letter to KLCCH which contained a 'without prejudice' offer to resolve the matter, hoping for a positive response.
Rabindra: Would you agree that KLCCH was uninterested in responding (to your letter)?
Shahriman: Yes.
Rabindra then pointed to a statement in Shahriman's petition which referenced a subsequent SRB board meeting, held on Sept 7, 2022, where several potential solutions were discussed.
The lawyer also referred to the minutes of that meeting, said to contain a proposal made by Shahril – dubbed Option 4 – which involved selling SRB's stake in Permata Tower.
Rabindra: (Was) Option 4 (discussed) within SRB's board?
Shahriman: No.
Shahriman is seeking to wind up SHSB, the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly listed SRB.
Both Shahril and Shahriman hold a 48% stake in SHSB, with the remaining 4% owned by Rameli Musa, also named as a respondent.
In the petition filed last September, Shahriman claims that an irreparable breakdown in mutual trust and confidence between him and Shahril necessitated SHSB's dissolution.
However, SHSB, Shahril and Rameli oppose the petition, contending that SHSB was never intended as a family business and that dissolution would be neither just nor equitable.
The hearing continues before Justice Leong Wai Hong.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
an hour ago
- Free Malaysia Today
Govt to boost creative economy, prioritise animation sector
Communications minister Fahmi Fadzil said MyCreative Ventures would manage funding while Finas would oversee certification and licensing. KUALA LUMPUR : The government is focusing on strengthening the creative economy to boost Malaysia's competitiveness and produce high-value content for both the local and international markets. Communications minister Fahmi Fadzil said the aim is to develop commercially viable works that can be exported, while also nurturing talent and expanding the creative industry's value chain. 'We hope these efforts will increase our competitiveness through the production of works with high commercial value for local and international enjoyment, including the exports of IPs,' he said at a press conference after the 13th Malaysia Plan (13MP) was tabled in the Dewan Rakyat today. Fahmi said his ministry would direct MyCreative Ventures to manage funding while Finas would oversee certification and licensing – particularly in line with the government's focus on animation. He said this follows Prime Minister Anwar Ibrahim's instruction to prioritise the animation sector. Fahmi also announced a nationwide online briefing tonight to grassroots leaders to explain the government's initiatives under the 13MP. 'When we support grassroots efforts in spreading government aspirations, the people benefit in the long run,' he said. Earlier today, Anwar tabled the 13MP in the Dewan Rakyat, which included major reforms to the education and economic systems, and policies for an ageing population.
The Star
3 hours ago
- The Star
13MP's job targets reflect commitment to digitalisation and manufacturing growth, says FMM
PETALING JAYA: The ambitious targets to create 700,000 new jobs in manufacturing and 500,000 in the digital economy announced in the 13th Malaysia Plan (13MP) signal the government's robust commitment to counter de-industrialisation while embracing digitalisation and advanced technologies, says Tan Sri Soh Thian Lai. The Federation of Malaysian Manufacturers (FMM) president emphasised that the focus on human capital reform is timely and necessary. "It is commendable, especially with the goal of raising labour's share of GDP to 40% and achieving full employment by 2030," he said in a statement on Thursday (July 31). He also noted the importance of aligning wages with skills, qualifications, and job roles, including extending minimum wage coverage to skilled and TVET graduates. "It is a positive step toward enhancing job quality and retaining talent. "Such wage-setting initiatives should be positioned as guidelines rather than mandates, as remuneration based on skills and qualifications will differ across industries due to variations in job complexity, market conditions, and productivity levels," he said. FMM also supports the implementation of the multi-tier levy mechanism aimed at encouraging automation and the hiring of local workers. However, Soh cautioned against abruptly reducing foreign worker reliance, advocating for gradual implementation with sector-specific considerations. "Flexibility in implementation is essential to balance competitiveness with inclusivity," he said. Soh also commended the RM430bil for development expenditure, a fiscal strategy that balances stimulating demand with maintaining debt sustainability. "Public investment, particularly in infrastructure and skills upgrading, will serve as a foundational enabler for economic growth," he said. Soh noted that the 13MP provided a strategic framework for resilience, productivity, and transformation from 2026 to 2030, with manufacturing positioned as a key growth driver. Recent data underscoring the manufacturing sector's strong economic returns, especially in the electrical & electronics (E&E) segment, supports this focus. Emphasising the importance of public service reform, Soh called for the use of innovative technologies to enhance service delivery and rebuild trust in government. "Good governance and accountability are essential for the successful implementation of the RMK13," he said. Soh also praised the 13MP's focus on digitalisation, AI, and renewable energy as catalysts for industrial transformation. "The push for 'Made by Malaysia' products is well-placed, with SMEs playing a central role in driving innovation and value creation," he said, referring to initiatives like the expansion of 5G and the National AI Action Plan. Soh noted that FMM views the 13MP as a strategic emphasis on high-productivity, investment-driven growth, with the manufacturing sector at the core of achieving macroeconomic and employment objectives. "With effective implementation, the manufacturing ecosystem, particularly E&E, advanced automotive, and green industry, can serve as a national growth engine. "We also see opportunities to deepen regional and sectoral spillovers through targeted infrastructure, regional development, and workforce reforms. "The 13MP lays a credible foundation; delivering on this plan will require policy coherence, private sector engagement, and sustained institutional focus," added Soh.
Free Malaysia Today
4 hours ago
- Free Malaysia Today
Ex-Pahang MB Adnan Yaakob fails to set aside RM84,000 judgment
The Court of Appeal dismissed ex-Pahang menteri besar Adnan Yaakob's appeal from a judgment entered in favour of the Securities Commission by a magistrate in Kuantan three years ago. PUTRAJAYA : Former Pahang menteri besar Adnan Yaakob has failed in his final attempt to overturn a summary judgment requiring him to pay a RM84,000 penalty to the Securities Commission (SC) over a disclosure omission in a state-owned company's prospectus. A three-member Court of Appeal bench chaired by Justice Azimah Omar said Adnan ought to have sought a judicial review to quash the penalty. 'On this ground alone, the appeal is bound to fail,' said Azimah, who sat with Justices Wong Kian Kheong and Brahim Ismail. Azimah said Adnan had also failed to raise any triable issue to prevent summary judgment from being entered against him. 'We are constrained to dismiss this appeal as it has no merit,' the judge said. The court also ordered Adnan to pay RM10,000 in costs to the SC. Counsel Lambert Rasa-Ratnam, Chia Oh Sheng and Lim Jun Xian represented the SC while Adnan, a qualified lawyer, represented himself in court. According to the facts of the case, Adnan, the state's menteri besar between 1999 and 2018, was a director on the board of Pasdec Holdings Bhd, a subsidiary of the Pahang Economic Corporation. The SC, a statutory body established under the Securities Commission Malaysia Act 1993 (SCMA), is empowered by that Act and the Capital Markets and Services Act 2007 to carry out its regulatory functions. On May 16, 2018, Pasdec issued an abridged prospectus which omitted material information. The corporation failed to disclose that its application for approval from the finance ministry – to subscribe to its entitlement at RM3.50 per rights share – was still pending. Pasdec's board of directors, which included Adnan, assumed responsibility for the oversight. On July 22, 2020, the SC notified Adnan that he had breached provisions in the Capital Market and Services Act and imposed a RM84,000 penalty. Since no payment was made, the SC filed a civil suit, and the magistrate in Kuantan on Aug 25, 2022 entered a summary judgment against Adnan, with costs of RM1,000. The High Court also dismissed Adnan's appeal on Feb 17, 2023.
