KUALA LUMPUR (Dec 23): Malayan Flour Mills Bhd's (KL:MFLOUR) said its partially-owned unit, Dindings Poultry Development Centre Sdn Bhd (DPDC), is seeking a judicial review of the Competition Appeal Tribunal's (CAT) decision to reject its request for a stay on a RM70.02 million penalty imposed by the Malaysia Competition Commission (MyCC) over alleged price-fixing cartel activities.
In a filing with Bursa Malaysia on Monday, MFlour said DPDC is also seeking a stay order to halt the enforcement of MyCC's decision.
The group said that on Dec 16, DPDC filed an application for leave to institute judicial review proceeding against the CAT Decision on stay, along with the application seeking the stay order.
The High Court has scheduled the hearing for DPDC’s leave application for Jan 2.
MFlour added: “On Dec 18, MyCC filed an application to enforce the MyCC decision under Section 42 of the [Competition Act 2010]. DPDC will take the necessary and appropriate action to challenge the application filed by MyCC."
Two other Bursa Malaysia-listed companies, PPB Group Bhd’s (KL:PPB) 80%-owned unit FFM Group and Leong Hup International Bhd’s (KL:LHI) wholly owned subsidiary Leong Hup Feedmill Malaysia Sdn Bhd, have also filed for a judicial review following the dismissal of their requests for a stay on the penalties imposed by the MyCC.
In addition to these three companies, MyCC also penalised Gold Coin Feedmills (M) Sdn Bhd, part of the Gold Coin Group, and PK Agro-Industrial Products (M) Sdn Bhd, a subsidiary of Thailand’s Charoen Pokphand Group Co Ltd under Charoen Pokphand Holdings (M) Sdn Bhd.
The combined penalties imposed on these five companies amount to RM415.5 million, the largest fine ever issued by MyCC in its 12-year history.
Over the weekend, MyCC warned that it will take a firm stance against associations that openly announce price hikes, minimum pricing or new trading conditions, particularly through the media. While acknowledging the rising business costs globally and domestically, the commission stressed that businesses must not resort to collusion as a solution.
Shares of MFlour gained half a sen or 0.94% to close at 53.5 sen on Monday, giving it a market capitalisation of RM656.8 million. Year-to-date, the counter has declined over 16%.