KUALA LUMPUR (June 24): Steelmaker Ann Joo Resources Bhd (KL:ANNJOO) said it has initiated legal action over alleged unpaid proceeds of RM9.4 million from the sale of its 51% stake in a waste management firm.
In a bourse filing on Wednesday, the group said its wholly-owned unit, Ann Joo Green Energy Sdn Bhd, filed the lawsuit last month after buyer Datuk Ng Kwok Siong failed to settle the balance by the March 7 deadline.
The group said disclosure of the suit is only being made now after an internal reassessment deemed the claim material under Bursa Malaysia’s listing requirements.
Under an agreement inked in February, Ann Joo Green Energy agreed to sell its 51% stake in Bumi Segar Indah Sdn Bhd for RM15.14 million to Ng, who already held a 32.07% interest in the company. Another 16.93% stake is owned by DSI Northern Source Sdn Bhd.
Ann Joo said the litigation is not expected to have any immediate material impact on operations, with financial implications dependent on the outcome of the case.
In May, Ann Joo announced that Southern Steel Bhd (KL:SSTEEL) had withdrawn from its attempt to acquire its unit Ann Joo Steel Bhd. The group instead entered into a new deal with a vehicle linked to Southern Steel’s largest shareholder, Singapore-based Green Esteel Pte Ltd, marking its third attempt to exit the loss-making upstream business.
Shares of Ann Joo closed down half a sen or 0.99% to 50 sen on Wednesday, giving the company a market capitalisation of RM355.94 million. The counter has fallen over 12% since the start of this year.