News

We refer to our announcement dated 6 January 2017 and 5 June 2018 in relation to the above matter.

Ekovest Berhad (“Ekovest”) wishes to announce that our wholly-owned subsidiary, Ekovest Construction Sdn Bhd (“ECSB”), had served a Notice of Arbitration to commence arbitration proceedings against Samling Resources Sdn Bhd (“SRSB”) (“Arbitration Proceedings”) and had on 2 July 2019 filed a Statement of Case in relation to the Arbitration Proceedings.

ECSB's claim in the Arbitration Proceedings is premised on:-

1. wrongful termination of the joint venture and shareholders agreement dated 6 January 2017 entered into by ECSB and SRSB to jointly undertake the development and upgrading of the Pan Borneo Highway in the state of Sarawak, Malaysia Phase 1 for work package contract WPC-02 (Semantan to Sg. Moyan Bridge + KSR Interchanges) (“Project”) (“JVA”);
2. misrepresentation by SRSB to ECSB, in order to induce ECSB into performing SRSB's tasks, duties and responsibilities prior to the submission of the tender, the procurement of the Project from Lebuhraya Borneo Utara Sdn Bhd (“LBUSB”), the Project Delivery Partner for the Project, and the consequent management of the Project and all its ensuing duties and tasks;
3. failure to expeditiously and diligently make the necessary prior applications for the approvals from LBUSB for the sub-contract of the Project to Samling – Ekovest JV Sdn Bhd, a special purpose vehicle incorporated by ECSB and SRSB to undertake the implementation of the Project (“JV Company”); and
4. in the alternative, failure to take any steps to compel LBUSB to consent to the sub-contract of the works to the JV Company, which should not have been unreasonably withheld;

in which ECSB claims for general damages, interest and costs to be determined by the arbitrator.

The Arbitration commenced by ECSB is not expected to have any material impact on the earnings, net assets and gearing of Ekovest and its subsidiaries (“Ekovest Group”) for the financial year ending 30 June 2020. The Arbitration is also not expected to have material operational impact on Ekovest Group.

None of the directors or the major shareholders of Ekovest or persons connected with them have any interest, direct or indirect, in the aforesaid Arbitration Proceedings.