KUALA LUMPUR (Oct 6): CelcomDigi Bhd (KL:CDB) said its wholly-owned subsidiary CelcomDigi Mobile Sdn Bhd has received a notice of arbitration from IMMA Technology Sdn Bhd over a dispute relating to a services agreement entered into nearly four years ago.

In a filing with Bursa Malaysia, CelcomDigi said telecommunications services provider IMMA is seeking RM72.59 million in alleged loss of profit, or alternatively a sum of RM28.28 million for purported wasted expenditure incurred.

The March 2022 services agreement involved the provision of credit advance services, with payment based on a revenue-sharing basis upon launch and no upfront costs payable to IMMA, the filing noted.

However, the service launch was deferred in anticipation of the Celcom-Digi merger, following which a new request for proposal (RFP) was issued in November 2023 with an expanded scope to cover both subscriber bases. IMMA, despite being invited, did not participate in the RFP.

According to the Companies Commission of Malaysia, IMMA’s sole shareholder is its director Charbel El Litani. He is also chief executive officer of InMobiles Holding, a global information and communications technology provider operating across the Middle East, Africa, Europe, Asia and the US since 2006.

CelcomDigi said it believes it has a strong case to defend and will contest the claims vigorously.

“The arbitration is not expected to have any material operational impact, nor any material impact on the net assets per share of CDB for the financial year ending Dec 31, 2025,” it added.

Shares of CelcomDigi rose three sen or 0.82% to close at RM3.69 on Monday, giving it a market capitalisation of RM43.29 billion.