KUALA LUMPUR (March 24): Cahya Mata Sarawak Bhd (KL:CMSB) has filed to set aside an arbitration award and is seeking a stay on its enforcement in a dispute with Malaysian Phosphate Venture Sdn Bhd (MPV).
In a Bursa Malaysia filing, Cahya Mata Sarawak said it had filed an originating summons at the High Court in Kuala Lumpur on the advice of its legal counsel.
The company is also seeking a stay on the recognition and enforcement of the award pending the court’s decision.
“Any further material developments will be announced to Bursa Securities accordingly,” the filing read.
The arbitration relates to a claim brought by MPV against Cahya Mata Sarawak’s subsidiaries, wholly-owned Samalaju Industries Sdn Bhd and 80.19%-owned Cahya Mata Phosphates Industries Sdn Bhd (CMPI).
The Asian International Arbitration Centre issued a final award in MPV’s favour on March 12, which was not disclosed due to confidentiality.
CMPI, formerly Malaysian Phosphate Additives (Sarawak) Sdn Bhd, was initially a joint venture between Samalaju Industries, MPV and Arif Enigma Sdn Bhd.
Since 2022, it has been involved in a dispute with Sarawak utility firm Syarikat Sesco Bhd over a 2019 power purchase agreement, with Sesco billing for cumulative electricity shortfalls despite Cahya Mata Sarawak arguing that the plant had not yet commenced commercial operations.
Shares in Cahya Mata Sarawak closed four sen or 3.5%, lower at RM1.12 on Tuesday, giving the company a market capitalisation of RM1.2 billion.