KUALA LUMPUR (Oct 1): Epicon Bhd (KL:EPICON) said on Wednesday that a unit of Tan Chong Motor Holdings Bhd (KL:TCHONG) is seeking RM26.15 million from the company in relation to a settlement agreement involving bus lease and maintenance debts.

Epicon, formerly known as Konsortium Transnasional Bhd, said it received a letter of demand on Tuesday from a legal firm appointed by Tan Chong Industrial Equipment Sdn Bhd (TCIE), a wholly-owned unit of Tan Chong.

The demand covers claims against Transnasional Express Sdn Bhd, Plusliner Sdn Bhd, Syarikat Kenderaan Melayu Kelantan Bhd, Syarikat Rembau Tampin Sdn Bhd and Kenderaan Langkasuka Sdn Bhd — all former subsidiaries of Epicon.

The demand involves a July 2016 settlement agreement that resolved outstanding obligations under 64 lease and 87 maintenance contracts with TCIE. As part of the deal, Epicon transferred a 95,434 sq m parcel of land in Ampang to TCIE, which was then valued at RM16 million.

Subsequent valuations sparked a legal battle. In 2017, the government valued the land at RM51.36 million, while an independent valuer appraised it at RM55.6 million.

Epicon then alleged misrepresentation and unjust enrichment, claiming TCIE gained RM22.68 million.

The High Court ruled in its favour in 2021, but TCIE later managed to get the decision overturned, with the Federal Court upholding the dismissal of the suit in February 2025.

Epicon, in a filing with Bursa Malaysia on Wednesday, said TCIE is seeking full repayment of the outstanding sum together with late payment interest of 0.75% per month from April 1, 2025 to the date of settlement, with payment due within 14 days.

Epicon said it has appointed solicitors to respond, adding that its legal advisers believe the company has a good defence against such claims.

“At this juncture, the company does not foresee any financial or operational impact from this matter,” it said, adding that it will continue to seek legal advice.

Epicon has exited the express bus business, after disposing of Park May Bhd — the holding company of Transnasional, Plusliner, SKMK, SRT and Langkasuka — to Nadicorp Holdings Sdn Bhd in 2023 as part of its PN17 regularisation plan.

The company recently proposed a RM72.13 million joint venture with NCT Alliance Bhd (KL:NCT) to venture into property development by building terraced homes in Batang Kali.

As at June 30, 2025, the company held RM10.42 million in cash and RM12.55 million in pledged fixed deposits. Total assets stood at RM259.16 million, including trade receivables of RM140.5 million.

Shares of Epicon closed up two sen or 15.38% to 15 sen on Wednesday, valuing the RM90.76 million. The counter has fallen over 42% year to date.