KUALA LUMPUR (Aug 2): Technology and construction firm Vinvest Capital Holdings Bhd has initiated a civil action in the High Court over the alleged loss of its shares in EA Holdings Bhd.
"This includes urgently applying for the necessary prohibitory injunctive orders to stop further derogation of the company’s rights over those shares," said Vinvest in a bourse filing.
The injunction application against EA Holdings was called up for hearing on Wednesday (Aug 2), and an interim injunction was granted by the court, added Vinvest.
Vinvest emerged as a substantial shareholder of EA Holdings in November 2021 after acquiring 1.1 billion shares or a 17.82% stake in the company, at 2.11 sen per share or a total of RM23.21 million.
EA Holdings, in a separate filing, said it was served with the writ and a notice of injunction application by Vinvest on Tuesday (Aug 1).
"The injunction application was called up for hearing on Aug 2, 2023. An ad interim injunction was granted by the High Court," said EA Holdings.
It added that the writ and the injunction application are fixed for case management on Aug 11.
EA Holdings did not provide further details on the case.
Nonetheless, both Vinvest and EA Holdings said that there would be no material financial and operational impact arising from the lawsuit.
Shares of Vinvest closed half a sen or 6.67% lower at seven sen on Wednesday, valuing the company at RM63.6 million. The stock has fallen 65% year-to-date
EA Holdings finished half a sen or 50% lower at 0.5 sen, with a market capitalisation of RM32.26 million. The stock has declined 50% year-to-date.