KUALA LUMPUR (May 8): Cape EMS Bhd (KL:CEB) said the group is facing a RM279 million lawsuit over alleged breaches of a collaboration deal with Aeronas Aerocraft Sdn Bhd, and has in turn filed a counterclaim against the light aircraft manufacturer.
In a filing with Bursa Malaysia on Friday, the group said its wholly-owned subsidiary Cape Manufacturing (M) Sdn Bhd (CMM) was on Thursday served with a writ filed by Aeronas at the High Court in Johor Bahru.
The suit arises from a memorandum of understanding dated March 9, 2025, for a proposed collaboration on aircraft manufacturing and related activities, with Aeronas alleging breaches of obligations under the deal.
Aeronas is seeking, among others, special damages of RM10.02 million and RM40 million, as well as alleged loss of income amounting to RM229.5 million. It is also claiming general and exemplary damages.
Cape EMS said it disputes the claims in their entirety.
The electronics manufacturing services provider added that CMM has filed a counterclaim on Friday against Aeronas and four others — PetraX5 Sdn Bhd, Raja Shazreen Petra Raja Azman Shah, Raja Iman Petra Raja Azman Shah and Kamarulzaman Abdul Karim — at the High Court in Kuala Lumpur.
CMM alleges misrepresentation and breaches of obligations by the five defendants, and is seeking recovery of monies paid, damages, restitution and other consequential reliefs.
“At this juncture, the company is assessing the financial and operational impact arising from the legal proceedings,” Cape EMS said.
Cape EMS had on March 25, 2025 — a few days after signing the MOU with Aeronas — announced plans to enter the aerospace parts manufacturing industry and expand its renewable energy business through a partnership with Taiwan’s Aerospace Industrial Development Corporation (AIDC).
The group had until then been focusing on power electronics-related segments like battery energy storage and power conversion systems.
Shares of Cape EMS closed unchanged at 29 sen on Friday, valuing the group at RM282.89 million.