KUALA LUMPUR (March 9): The units of PPB Bhd (KL:PPB) and Malayan Flour Mills Bhd (KL:MFLOUR) have both secured leave to commence judicial review of their dismissed appeals against a fine from the Malaysia Competition Commission (MyCC) for price-fixing.
PPB’s 80%-owned FFM Bhd and MFM’s 51%-owned Dindings Poultry Development Centre Sdn Bhd both secured leave — permission — from the High Court to commence judicial review proceedings against the Competition Appeal Tribunal's (CAT) decision, according to the groups' respective bourse filings on Monday.
Both units also obtained ad interim stay orders on the CAT and MyCC decisions pending the determination of their respective interim stay applications.
The legal challenge stems from MyCC’s decision in December 2023 to impose a combined RM415.5 million penalty on five feed millers — FFM, Dindings, Leong Hup International Bhd’s (KL:LHI) Leong Hup Feedmill Malaysia Sdn Bhd (LFM), Gold Coin Feedmills (M) Sdn Bhd and PK Agro-Industrial Products (M) Sdn Bhd.
The penalty came after the competition watchdog found them guilty of forming a cartel to coordinate price increases in the chicken feed market between January 2020 and June 2022. The five feedmillers collectively controlled about 40% of the market during the investigation period.
Four of them — FFM, Dindings, LFM and Gold Coin — appealed the fine, but CAT dismissed their appeals, affirming MyCC’s ruling.
The four face an aggregate fine of RM367.69 million, with LFM facing the largest of RM157.47 million, followed by Gold Coin with RM97.51 million, Dindings with RM70.02 million, and FFM with RM42.69 million.
Last Friday (March 6), Leong Hup announced that LFM also secured leave from the High Court to commence its judicial review of the CAT’s decision. It was also granted an ad-interim injunction on its fine until the determination of its interim stay application.
Shares in PPB ended 20 sen or 1.8% lower at RM10.94, valuing the group at RM15.56 billion.
MFM shares closed 3.5 sen or 5.38% lower at 61.5 sen, giving the group a market capitalisation of RM762.08 million.