KUALA LUMPUR (Oct 24): CIMB Group Holdings Bhd and PLUS Malaysia Bhd have worked out a settlement agreement that puts an end to the joint venture partners’ dispute over PLUS’ decision to launch its own toll collection system.
Both companies are to execute a written notice of discontinuance at the High Court of Malaya here in Kuala Lumpur, to withdraw the originating summons and arbitration proceedings, with no liberty to file afresh and no orders as to costs, CIMB said in an exchange filing today.
“The company wishes to announce that on Oct 24, 2019, the company, CIMB SI 1 and PLUS had entered into a settlement agreement as full and final settlement between the parties of all disputes, in respect of or arising from the:
(a) JVA (joint venture agreement);
(b) originating summons; and
(c) Notice of arbitration filed and served by the company and CIMB SI 1 on PLUS,” the filing read.
In December 2018, CIMB filed and served a notice of arbitration against PLUS Malaysia, claiming the latter had breached its obligations under a joint venture agreement in relation to Touch 'N Go Sdn Bhd by launching its own toll collection system.
At the time, CIMB claimed PLUS had breached its obligations under the 1998 JVA by commencing and launching its own PLUS Radio Frequency Identification (RFID) System.
Under the JVA, CIMB has a 52% stake in Touch ‘N Go, while PLUS and MTD Equity Sdn Bhd hold 28% and 20% respectively.
CIMB and its subsidiary CIMB SI Sdn Bhd wanted the arbitration to seek, among others, an injunction to restrain PLUS from engaging in further business of the PLUS RFID system, together with damages, interests and costs.
Shares of CIMB closed four sen or 0.81% higher at RM4.98 today, bringing a market capitalisation of RM48.44 billion.