KUALA LUMPUR (March 13): Cahya Mata Sarawak Bhd (KL:CMSB) said its subsidiaries have lost an arbitration dispute against Malaysian Phosphate Ventures Sdn Bhd (MPV).

The Asian International Arbitration Centre awarded a final award in MPV’s favour, marking an end to the out-of-court proceedings on claims MPV brought against Cahya Mata’s units, wholly-owned Samalaju Industries Sdn Bhd and 80.19%-owned Cahya Mata Phosphates Industries Sdn Bhd (CMPI), according to a bourse filing on Friday.

However, the final award was not disclosed in the filing, with Cahya Mata citing confidentiality.

“Due to rules of confidentiality under abstinence, the contents of the said award will not be disclosed,” the company said. The background of the arbitration was also not disclosed.

Cahya Mata noted, however, that the final award has no material financial impact on the company.

“Cahya Mata Sarawak will review the said award with advice on legal counsel and will make further announcements on any material development as and when it is appropriate and/or necessary,” it added.

CMPI, formerly known as Malaysian Phosphate Additives (Sarawak) Sdn Bhd), was initially set up as a joint venture between Cahya Mata’s Samalaju Industries, MPV and Arif Enigma Sdn Bhd.

Since 2022, CMPI has been embroiled in a dispute with Sarawak’s utility firm, Syarikat Sesco Bhd. The dispute revolves around a power purchase agreement from January 2019 for CMPI’s phosphate plant.

The disagreement began when Sesco billed the company for cumulative electricity consumption shortfall, despite Cahya Mata contending the plant is not deemed to have commenced commercial operations.

Shares in Cahya Mata ended three sen or 2.5% lower at RM1.17, valuing the company at RM1.26 billion.