KUALA LUMPUR (Dec 5): Bintai Kinden Corporation Bhd (KL:BINTAI) has moved ahead with legal action to recover RM9.1 million from the vendor of its 2021 acquisition of Johnson Medical International Sdn Bhd.
In a bourse filing on Friday, the Practice Note 17 (PN17) company said it had filed a writ of summons and statement of claim at the High Court of Melaka for the recovery of RM9.1 million tied to the profit guarantee under the agreement signed with vendor Yeo Eng Lam in April 2021, along with compensation, interest of 5% per annum from Oct 25, 2023, costs on a solicitor-and-client basis, and other reliefs deemed fit by the court.
The lawsuit stemmed from a dispute in Bintai Kinden’s RM50 million acquisition of Johnson Medical — a medical engineering solutions provider specialising in operating theatres and medical gas systems — which the group said would expand its healthcare segment and allow it to tap demand driven by the Covid-19 pandemic.
The original deal, completed through a mix of cash and share issuance, included a profit guarantee totalling RM9.1 million up to July 31, 2023.
However, Johnson Medical reported a loss for the financial year ended March 31, 2023, triggering Bintai Kinden to issue a notice to remedy in September 2023 to call on the profit guarantee and, eventually, a formal notice of demand issued on July 7, 2025, after negotiations over two years failed to resolve the matter.
Bintai Kinden, which fell into PN17 status in March 2023 after a subsidiary defaulted on a financing facility, had earlier rescinded new agreements it inked with Rinani Care Sdn Bhd in end-2022 that would release and discharge Yeo Eng Lam from further obligations to meet the profit guarantee as well as a trade receivables guarantee. This resulted in the original share sale and profit guarantee terms remaining in force.
Shares in Bintai Kinden closed half a sen or 7.14% lower at 6.5 sen on Friday, for a market capitalisation of RM95.32 million.