Company Name: KOBAY TECHNOLOGY BERHAD
Stock Name: KOBAY
Date Announced: 13 Mar 2018
Category: General Announcement for PLC
Reference Number: GA1-13032018-00058
Subject: MATERIAL LITIGATION
Description: KUALA LUMPUR HIGH COURT CIVIL SUIT
BETWEEN NGLTECH SDN. BHD. AND BEND WELD ENGINEERING SDN. BHD.
Pursuant to the material litigation, bearing High Court Suit No. : WA-22C-73-07/2017 (“Suit 73”) and WA-22C-75-07/2017 (“Suit 75”), between NGLTech Sdn. Bhd. (“NGL”) and Bend Weld Engineering Sdn. Bhd. (Company No. 203565-P) (“BWE”), a wholly owned subsidiary company of Lipo Corporation Sdn. Bhd. (Company No.: 491485-V) (“Lipo”), for which Lipo is the wholly owned subsidiary company of Kobay Technology Bhd. (Company No. : 308279-A) (“Kobay” or the “Company”), and with reference to the announcements made earlier,
|Date of Announcement Made
||Reference No. of the Announcement Made
|11 July 2017
|13 July 2017
|14 July 2017
|25 July 2017
|11 September 2017
|26 October 2017
the Board of Directors of Kobay wishes to announce that on 12 March 2018, both NGL and BWE has agreed and entered into a consent judgment for both Suits 73 and 75 with the following terms :-
1.as full and final settlement, NGL agrees to pay BWE a sum of RM200,000-00 by 25 June 2018;
2.both NGL and BWE, agree to withdraw both Suits 73 and 75 and respective counterclaim with no order as to costs, no interests and no liberty to file afresh; and
3.in the event of default of payment by NGL as per item (1) above, the full sum of RM1,389,624-85 and RM83,377-49 as Goods and Services Tax shall be immediately due and payable to BWE.
The financial impact of the consent judgement on the Group
The consent judgement with settlement sum of RM200,000-00 shall reduce the Group’s profit after tax and net assets for financial year ending 30 June 2018 by approximately RM0.9 million (net off tax impact, which is equivalent to earning and net assets per share of 0.9 sen) accordingly but the consent judgement has effectively extinguished NGL’s claim of RM2,868,712-96 against BWE.
The Directors are of the opinion that the consent judgement is in the best interest of the Company and the Group, and is not detrimental to the Company and its shareholders.
This announcement is dated 13 March 2018.