KUALA LUMPUR (May 18): The BGMC Group of Companies said it has arrived at a settlement with its former joint venture partners — a Japanese national and his Singapore-based company DPI Solar 1 Pte Ltd — who initiated a RM180 million lawsuit against the group and 23 others linked to it last year for purported fraud and wrongful loss involving the sale of two solar photovoltaic plants, one in Kuala Muda, Kedah and one in Machang, Kelantan.

BGMC's solicitor announced this in a statement on Thursday (May 18), saying it was a comprehensive resolution to all legal proceedings filed by Kazuomi Kaneto and DPI Solar 1, who previously held a 40% stake in the plants.

"This settlement was achieved strictly without any admission of wrongdoing and/or liability by any of the parties," BGMC's solicitor Messrs Thomas Philip said in the statement.

In the suit filed in July, Kaneto and DPI Solar 1 claimed the BGMC Group allegedly committed fraud, misrepresentation, conspiracy and breaches of fiduciary duty, among others, when it sold BGMC Bras Power and Idiwan Solar — the BGMC subsidiaries who are developing the two solar plants — to a company named reNIKOLA Holdings Sdn Bhd, without the consent of the JV partners. reNIKOLA has been identified in the suit as a white knight brought in by BGMC that would ensure the completion of both projects.

It was previously reported, a month after the suit was filed, that the disputing parties were trying to reach a settlement.

"We are very pleased with the settlement, which clearly shows that reNIKOLA as the white knight is able to deliver not just the completion, but also allowed this comprehensive settlement agreement for our client," said Mathew Thomas Philip, the founder and managing partner of Messrs Thomas Philip.

According to the law firm, the settlement follows the recent subscription by reNIKOLA for new redeemable preference shares and the purchase of three companies holding the parcels of land on which the two solar power plants are on.

"The details of the settlement are confidential, and as such, we cannot provide any further information on the matter.

We would like to thank all parties involved and our legal team for their hard work and dedication in reaching a resolution that is satisfactory to all parties," said BGMC Group chief executive officer Datuk Teh Kok Lee.

Moving forward, the settlement will allow the BGMC Group to focus on its core business and the interests of all stakeholders involved, the statement added.