KUALA LUMPUR (July 28): JAKS Resources Bhd has succeeded in its appeal against the High Court decision requiring the company to pay damages to Star Media Group Bhd in relation to the latter’s corporate guarantee claim.
The claim is related to the balance purchase price of RM134.5 million for the sale of a piece of land in Section 13, Petaling Jaya from Star Media to JAKS.
Star Media filed the suit against JAKS on April 30, 2019, claiming a RM134.5 million balance purchase price, along with late payment interest of RM43.22 million, after attempting to call on the RM50 million bank guarantee by JAKS.
JAKS undertook the development of Pacific Star on the land, which includes a 15-storey office block (Tower A), but missed the deadline to deliver the tower to Star Media after a delay of 28 months.
In a bourse filing today, JAKS said the Court of Appeal decision also effectively sets aside the High Court order that the company should pay Star Media late payment Interest of RM50.54 million.
JAKS added that it also succeeded in defending two ongoing suits where the company counterclaimed against Star Media’s “loss of profit from corporate exercise, loss of reputation [as well as] loss and impact on [its] status” amounting to RM595.28 million.
At midday, JAKS’s share price was 13% higher at 52 sen, from the 46 sen level earlier this month, giving the company a market capitalisation of RM1.05 billion.