PETALING JAYA: QL Oil Sdn Bhd (QLO), a wholly owned subsidiary of QL Resources Bhd, has commenced arbitration proceedings against Indonesian firms Hang Ting Pte Ltd (HT) and PT Pipit Citra Perkasa (PCP).
The proceedings relate to disputes regarding a master joint venture agreement (MJVA) signed by the three parties in 2006, QL Resources said in a local bourse filing yesterday.
QL Resources is an integrated agro-based business group, while HT and PCP are affiliated companies owned by the family of Kristianto Kandi Saputro.
Under the MJVA dated Aug 16, 2006, QLO and HT had formed a joint venture company named QL Mutiara (S) Pte Ltd (QLM).
SPONSORED CONTENT Daily Express members: Enjoy 1 for 1 signature cocktails and more at Hyatt Centric Kota Kinabalu Kota Kinabalu: DAILY EXPRESS is partnering with Hyatt Centric Kota Kinabalu to offer an exclusive deal for our members. Read more QLM subsequently owns a 95% stake in plantation firm Pipit Mutiara Indah (PMI), while PCP holds the remainder 5% equity.
Hence, QL Resources holds an effective interest of 74.5% in PMI while HT and PCP cumulatively own a 25.5% stake.
Convoluted legal battles
In its filing yesterday, QL Resources said PCP had on August 2021 commenced legal proceedings in Indonesia against Chia Seong Fatt in his capacity as director of PMI in the Tarakan district court for alleged management negligence.
Chia was also a director of QLM and QL Resources.
PCP was seeking compensation amounting to some RM221.87 million, claiming that the management negligence had caused PMI to suffer eight years of continuous losses between 2012 and 2020, depriving it of any dividends throughout the period.
Additionally, PCP accused PMI, QLM and Chia of not complying with good corporate governance practices, alleging them of failing to disclose accurate data and information requested by PCP.
On Dec 6, 2021, PMI, QLM and Chia had successfully obtained an interim injunction order against PCP, restraining the latter from proceeding with the Indonesian proceedings.
However, QL Resources claimed that PCP deliberately continued with the Indonesian proceedings, in breach of the injunction order and the MJVA, until around March 2022.
PCP applied to withdraw and annul the lawsuit against the three accused parties in March 2022.
In the filing yesterday, QL Resources said QLO has launched the arbitration proceedings to seek relief from HT and PCP.
QLO is also seeking specific performance orders to compel both Indonesian firms to comply with their obligations under the MJVA, as well as damage compensations.
QL Resources said the arbitration is not expected to have any material financial or operational impact on the company for the financial year ending March 31, 2024.
The notice of arbitration against HT and PCP were filed at the Singapore International Arbitration Centre yesterday.
As at 4.41pm, QL Resources’ share price closed 1 sen higher (0.19%) at RM5.38, giving it a market capitalisation of RM13.07 billion.
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