Date of filing of the Originating Summons

The Board of Directors of Sarawak Consolidated Industries Berhad (“the Company”) wishes to announce that the Company (“the Plaintiff”) had on 02.07.2018 through its solicitors, Messrs J Marimuttu & Partners, Advocates and Solicitors filed the said Originating Summons under Suit No. BKI-24NCC(ARB)-2/7-2018 (HC2) the High Court of Sabah and Sarawak, at Kota Kinabalu (“the Originating Summons”).  The Originating Summons was filed by Sarawak Consolidated Industries Berhad (“the Plaintiff”) through its solicitors against Gaya Belian Sdn. Bhd. and two other individuals (“the Defendants”). Together with the Originating Summons, an Ex-Parte Notice of Application has also been filed on 03.07.2018  for interim reliefs. The High Court had on the 03.07.2018 granted the Ex-Pate Order restraining the Defendants from selling, transferring or otherwise dealing with 7,121,000 shares in the Plaintiff.

The particulars of the Originating Summons

There is an arbitration agreement between the Plaintiff and the Defendants and the Plaintiff is now liaising with the Defendants to refer the dispute to Arbitration, failing which the Plaintiff intend to refer the dispute to the Civil Courts by way of appropriate proceedings.

Prior to the Originating Summons, the Company through its solicitors have issued the following notices to the Defendants:

     1.  Notice of Termination dated 19.04.2018; and

     2.  Notice of Dispute dated 25.05.2018.

The financial and operational impact of  the Originating Summons

At this juncture, the Board of Directors is still in the midst of assessing the quantum of damages and losses suffered and the respective financial impact to SCIB Group. We believed there would not be any material operational impact.

Steps taken and proposed to be taken in respect of the Originating Summons

The matter is in the hands of our Solicitors and the Company is seeking the necessary legal advice to resolve this matter.

This announcement is dated  3 July 2018.