KUALA LUMPUR (Jan 10): Leong Hup Feedmill Malaysia Sdn Bhd (LFM) and Dindings Poultry Development Centre Sdn Bhd (DPDC) have filed appeals against the Malaysia Competition Commission's (MyCC) decision to fine the two companies over alleged chicken feed cartel practice.
MyCC had imposed a penalty of RM157.47 million on LFM, and another RM70.02 million on DPDC.
In a filing with Bursa Malaysia on Tuesday, Leong Hup International Bhd, which wholly owns LFM, announced that it had applied for a stay of the MyCC decision pending an appeal.
Malayan Flour Mills Bhd (MFM), which owns a 51% stake in joint-venture unit DPDC, announced the same in a separate filing on Wednesday.
On Dec 22, MyCC issued the largest fines in the quasi-judicial body's 12-year history amounting to RM415.5 million on five feed millers for allegedly colluding in a "chicken feed cartel" to fix poultry feed prices.
The three other companies were PPB Group Bhd's 80%-owned FFM Bhd (which was fined RM42.69 million), Gold Coin Feedmills (M) Sdn Bhd under Gold Coin Group (RM97.51 million), and PK Agro-Industrial Products (M) Sdn Bhd under Charoen Pokphand Holdings (M) Sdn Bhd (RM47.80 million).
Immediately in a filing on Dec 22, Leong Hup affirmed its stand that LFM was not involved in the alleged price-fixing practice, stating that MyCC's findings were “without merit”.
MFM then announced a similar stand in a separate filing on Dec 26, denying that DPDC was involved in the alleged cartel practice.
At Wednesday's noon break, shares in Leong Hup were up half a sen or 0.89% to 56.5 sen each, valuing the group at RM2.06 billion. Shares in MFM remained unchanged at 65.5 sen, valuing the group at RM670 million.