KUALA LUMPUR (Jan 15): VS Industry Bhd (KL:VS) said on Wednesday that the High Court has ruled in favour of the company in a minority shareholder oppression lawsuit it brought against NEP Holdings (Malaysia) Bhd and three of its directors.
The electronics manufacturing services provider said in a statement that the court found NEP Holdings, as well as the directors, had “exercised in a manner oppressive to, or disregard of, VS Industry’s interest as a shareholder”.
The court has ordered NEP Holdings, known for its 'Diamond' brand of water filtration system products, to be wound up, said VS Industry. NEP Holdings’ product range also included coffee machines and coffee capsules under the brand “Arissto”.
Datuk Ooi Woon Chee and Wong Ching Yong of DC Restructuring Solutions PLT have been appointed as the liquidators to oversee the process.
VS Industry said the court’s ruling has resolved the dispute between the companies, and underscored the group's commitment to accountability, protection of shareholder rights, and the upholding of corporate governance principles.
VS Industry acquired a 20% stake in NEP Holdings for RM60 million in 2016.
The acquisition came with an agreement that VS Industry has the rights, duties, liabilities and obligations of a shareholder in relation to the management and operation of NEP Holdings and its subsidiaries.
In July 2023, VS Industry filed an oppression suit against NEP Holdings, and sought for the company to be wound up, after the latter failed to hold board meetings or annual general meetings since 2021, withheld audited financial statements, and did not distribute agreed dividends despite recording profits.
VS Industry shares settled five sen or 4.55% lower at RM1.05 on Wednesday, valuing the group at RM4.07 billion.