KUALA LUMPUR (Oct 4): Felda Global Ventures Holdings Bhd’s (FGV) subsidiary Delima Oil Products Sdn Bhd is being sued by a Chinese company over alleged shipment issues.

FGV said Chengdu Azonda International Trading Co Ltd claims it had incurred damages amounting to RM7 million due to alleged shipment issues in 2016 and 2017, as well as loss of future profits of about RM46 million.

“Delima strongly refutes this claim and will defend FGV's position by filing a statement of defence and counterclaim,” FGV said in a filing with Bursa Malaysia.

FGV said the claims will not have any material, financial or operational impact on the group, and that further announcement will be made, when there is material development on the matter.

Last week, Delima senior general manager Kamarzaman Abd Karim had resumed duty in the company, following closure to a domestic investigation on purported wrongdoings in business dealings between Delima and Afghan-based Safitex Trading LLC.

Shares in FGV closed three sen or 1.79% higher today at RM1.71, with some 4.58 million shares exchanging hands, giving the group a market capitalisation of RM6.24 billion.