KUALA LUMPUR (Nov 6): DXN Holdings Bhd’s wholly owned subsidiary DXN Corp (Ningxia) Co Ltd has filed a writ of summons and statement of claims against China’s Fujian Anxi Jinjiang Source Tea Technology Co Ltd (Fujian Anxi) over a stake disposal dispute.

The health-oriented and wellness consumer products provider told Bursa Malaysia on Monday that it filed the summons and claims after Fujian Anxi had failed to secure a commercial loan or make the payment related to group’s stake disposal in Florin (Fujian) Integrated Agricultural Science and Technology Co Ltd (Florin Fujian).

To recap, in May 2022, DXN’s unit, DXN Corp (Ningxia), disposed of its 80% stake in Florin Fujian to Fujian Anxi for 58.66 million renminbi (RM38.1 million), payable in instalments. 

However, Fujian Anxi failed to make the second instalment to DXN Corp (Ningxia) and led to the termination of the stake disposal agreement between both parties in July 2023. 

Following the termination, DXN Corp (Ningxia) seeks a penalty of two million renminbi (RM1.27 million) from Fujian Anxi, amongst others. 

DXN Corp (Ningxia) also wants to regain control of Florin (Fujian) and its wholly owned subsidiary Anxi Gande Foluohua Integrated Agricultural Science and Technology Co Ltd.

Apart from the amount claimed and the corresponding legal costs, DXN said the writ of summons together with the statement of claims are not expected to have any other material financial impact on the company for the financial year ending Feb 29, 2024 (FY2024). 

Shares in DXN finished one sen or 1.5% higher at 67.5 sen, giving it a market capitalisation of RM3.36 billion.