KUALA LUMPUR (Dec 22): Leong Hup International Bhd has reiterated its stand that its wholly owned subsidiary Leong Hup Feedmill Malaysia Sdn Bhd (LFM) was not involved in price-fixing practices involving poultry feed as part of a "chicken feed cartel", as alleged by the Malaysia Competition Commission (MyCC).
MyCC’s finding of infringement by LFM is without merit and the group will challenge the decision, said Leong Hup in a filing with Bursa Malaysia on Friday.
"In consultation with its external legal counsels, the company and LFM will take the necessary and appropriate actions to challenge the decision and apply for a stay," Leong Hup said.
Earlier on Friday, MyCC announced that it has imposed a fine of RM157.47 million on LFM for colluding in a "chicken feed cartel" to fix poultry feed prices.
LFM was one of five companies that were alleged to have been part of the cartel. The other parties include Bursa Malaysia-listed companies Malayan Flour Mills Bhd's partially owned Dindings Poultry Development Centre Sdn Bhd and PPB Group Bhd's 80%-owned FFM Bhd.
The remaining two companies are Gold Coin Feedmills (M) Sdn Bhd under Gold Coin Group and PK Agro-Industrial Products (M) Sdn Bhd under Charoen Pokphand Holdings (M) Sdn Bhd, which in turn is a subsidiary of Thai conglomerate Charoen Pokphand Group Co Ltd.
The total penalties imposed on the five companies amounted to RM415.5 million, the largest amount of fines that has ever been imposed by the quasi-judicial body in its 12-year history.
Shares of Leong Hup went down 2.5 sen or 4.17% to close at 57.5 sen, valuing the group at RM2.08 billion.