KUALA LUMPUR (Feb 24): Leong Hup International Bhd (KL:LHI) has initiated court proceedings to challenge the Competition Appeal Tribunal's recent decision to uphold a multi-million ringgit fine imposed by the Malaysia Competition Commission against its subsidiary for price-fixing.

Its chicken feed subsidiary Leong Hup Feedmill Malaysia Sdn Bhd (LFM) is seeking permission to commence a judicial review of the tribunal's decision. The company has also applied for a stay of proceedings, requesting the court to put on hold the financial penalty and all related enforcement actions until the legal review is concluded.

The move comes after the tribunal on Feb 11 dismissed appeals from four major feed millers, including Leong Hup, against a landmark ruling made by the MyCC.

The commission had, in December 2023, imposed an aggregate fine of RM415.5 million — the largest in Malaysian history — on five feed millers after finding them guilty of forming a chicken feed cartel. The firms, including the four major feed millers who later appealed the case, were accused of coordinating price increases between January 2020 and June 2022, which MyCC said had artificially inflated the cost of poultry production and impacted consumer prices.

The five feedmillers controlled about 40% of the market during the probe period. The four of them who appealed the ruling — LFM, Dindings Poultry Development Centre, FFM Bhd, and Gold Coin Feedmills (M) Sdn Bhd — faced a combined fine of RM367 million. 

Of the four, Leong Hup bears the largest share of the penalty, at RM157.5 million. Leong Hup has maintained that the allegations are without merit.

Its share price closed one sen higher at 79.5 sen on Tuesday, valuing the group at RM2.91 billion. The stock has gained 27.2% over the past one year.