PETALING JAYA: Puncak Niaga Holdings Bhd has withdrawn its RM14 billion suit against the Selangor government over an alleged forced takeover of the state’s water industry in March 2017.
“Puncak Niaga wishes to announce to the exchange that the company’s solicitors filed the notice of discontinuation of its claim at the Shah Alam High Court with no order as to costs and without liberty to file afresh.
“Hence, the Shah Alam High Court has struck off the case,” the group said in a filing with Bursa Malaysia today.
The suit was filed six years ago after Selangor-owned Kumpulan Darul Ehsan Bhd acquired PNSB Water Sdn Bhd and 70% of Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) from Puncak Niaga for RM1.55 billion cash.
The deal was in connection with a long-delayed water restructuring exercise in Selangor.
During that period, Puncak Niaga had aimed to recover the disparity in costs between the final price of RM1.55 billion and its valuation of the two companies at RM2.08 billion-RM2.35 billion.
Additionally, it had pursued compensation for the loss of business opportunities totaling RM13.496 billion, along with accrued interest.
In today’s filing, Puncak Niaga said the discontinuation was made given that the claim has yet to proceed to trial at the Shah Alam High Court despite being initiated six years ago.
“The discontinuation of Puncak Niaga’s claim will enable it to reduce incurring more resources and further costs to pursue the matter in court,” the filing read.
In February 2018, the suit was struck out by the Shah Alam High Court. However, the Court of Appeal reinstated the case in February 2021.
Furthermore, the company added that the withdrawal of the suit will allow it to focus on its business activities and long-term sustainable growth.
Apart from the Selangor state government, Puncak Niaga initially included two former Selangor menteris besar as defendants, namely the late Khalid Ibrahim and Azmin Ali.
However, both of them were later removed as parties to the lawsuit.
As at 3.55pm, Puncak Niaga’s share price rose four sen (10.81%) to 41 sen, giving it a market capitalisation of RM184.21 million.
Its shares have risen by 78.26% year-to-date.