KUALA LUMPUR (Jan 27): Bina Puri Holdings Bhd (KL:BPURI) said the company does not expect “any significant financial and operational impact” from the RM28.17 million lawsuit by Wisma Majujaya Sdn Bhd in relation to a joint venture agreement (JVA) to develop a project in Johor.
The suit revolves around a RM28.17 million sum in unpaid returns stipulated in the JVA plus interest Wisma Majujaya alleges Bina Puri failed to pay it and the company is thus claiming for.
The suit named Bina Puri's wholly owned unit Bina Puri Properties Sdn Bhd, Bina Puri and Bina Puri deputy executive chairman Tan Sri Tee Hock Seng as defendants. Bina Puri and Tee entered into a corporate and personal guarantee in consideration of the JVA.
In a bourse filing, Bina Puri said its board is of the opinion that the company has a “fair and reasonable chance of success" in the suit.
“As at the data of this announcement, this case is not expected to have any significant financial and operational impact on Bina Puri Properties or Bina Puri for the financial year ending [June 30,] 2025,” Bina Puri added.
Bina Puri also noted that Wisma Majujaya filed an application for summary judgement, which it said it resisted via its solicitors.
The decision on the summary judgement application is set to be delivered next Monday (Feb 3).
The JVA was signed in November 2017, and it pertains to a development in Johor Bahru called Puri Residence.
Wisma Majujaya claimed to have contributed RM10 million for the development under the JVA. Bina Puri then promised Wisma Majujaya up to RM26 million in return for the amount of investment with 8% interest per annum in the event of late payment.
According to Companies Commission Malaysia filings, Wisma Majujaya is 90% owned by Datuk Tan Hock Kien and 10% by Tan Chuan Kiat.
Shares in Bina Puri gained half a sen to close at 28.5 sen on Monday, valuing the construction firm at RM229.7 million.