ARBITRATION PROCEEDING BY PRAI POWER SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF MALAKOFF CORPORATION BERHAD, MMC CORPORATION BERHAD’S 51% OWNED SUBSIDIARY, AGAINST SUMITOMO CORPORATION, JAPAN
08 Jun 2012
Further to the announcement dated 17 August 2011, MMC Corporation Berhad (“MMC”) wishes to announce that Prai Power Sdn Bhd (“PPSB”), a wholly-owned subsidiary of Malakoff Corporation Berhad, MMC’s 51%-owned subsidiary, had on 7 June 2012, signed a settlement agreement with Allianz General Insurance Company (Malaysia) Berhad, the insurers of PPSB and Sumitomo Corporation (“Sumitomo”) (collectively referred to as “the Parties”) (“Settlement Agreement”).
The Settlement Agreement substantially sets out the Parties’ agreement to resolve and settle in full the dispute between the Parties in the arbitration proceedings on the terms and conditions of the Settlement Agreement. As a result of the Settlement Agreement, PPSB, as the claimant has agreed to withdraw its claim in the arbitration proceedings against Sumitomo.
The signing of the Settlement Agreement is not expected to have any material impact on the earnings and the net assets of the MMC Group for the financial year ending 31 December 2012.
DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
None of the directors or substantial shareholders of MMC or persons connected to them has any interest, direct or indirect in the aforesaid Settlement Agreement.
This announcement is dated 8 June 2012.
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