KUALA LUMPUR (Sept 15): KPJ Healthcare Bhd (KL:KPJ) has discontinued its legal action against seven of 11 former directors it was suing over the RM119.92 million sale of a 49% stake in its previously wholly-owned subsidiary, Lablink (M) Sdn Bhd, in 2018.
In a bourse filing on Tuesday, KPJ said the group, with its wholly-owned subsidiary Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB), had filed a notice of discontinuance with the Kuala Lumpur High Court with costs, which was recorded before the judge during case management on Monday. However, the healthcare group did not disclose the cost details.
The seven individuals released from the suit are: former independent non-executive directors Tan Sri Siti Sa’diah Sh Bakir, Datuk Azzat Kamaludin and Zainah Mustafa; and former non-independent non-executive directors Zulkifli Ibrahim, Dr Kok Chin Leong, Datuk Dr Zaki Morad Mohamad Zaher and Mohd Sahir Rahmat.
Meanwhile, the legal action will proceed against the group's former chairman Datuk Kamaruzzaman Abu Kassim, former president and managing director Datuk Amiruddin Abdul Satar, and former executive directors Aminudin Dawam and Jasimah Hassan.
KPJ and KPJSB initiated the suit in January 2024 against the 11 former board members over the stake sale to KL Kappa Sdn Bhd, which is backed by Singapore-based private equity firm Quadria Capital Investment Management Pte Ltd. Claiming negligence and breaches of fiduciary and statutory duties that had led to the group suffering losses from the deal, they sought for, among other reliefs, compensation of up to RM95.77 million, along with damages, interest and costs.
Barring any unforeseen circumstances, the suit is not expected to have any material financial or operational impact on the group for the financial year ending Dec 31, 2026, the KPJ said in its latest filing.
The group's share price has retreated 26% from its recent peak of RM3.52 in early April. The stock closed unchanged at RM2.60 on Tuesday, for a market capitalisation of RM11.77 billion.