Today MClean announced to Bursa:
The Board of Directors of MClean wishes to announce that the Company’s subsidiaries, DWZ Industries Sdn. Bhd. (“DWZ”) and DWZ Industries (Johor) Sdn. Bhd. had been served with a Letter of Demand by Petroliam Nasional Berhad (“Petroliam”) and Petronas Gas Berhad (“PGB”) (“collectively referred to as “Petronas”) through its solicitors for:
1. unlawful entry or caused to enter the lands held under HS(M) 4144 PTD 179156, Mukim Plentong, Johor Bahru, Johor and no. Hakmilik 1027, Mukim Plentong, Johor Bahru, Johor (collectively referred to as “Lands”) and constructed and/or installed a piping structure of approximately 50 metres under the Lands which is connected to DWZ’s premises at No. 30, Jalan Maju 1, Taman Perindustrian Desa Cemerlang, 81800 Ulu Tiram, Johor (“the Premises”); and
2. discharge of certain noxious and toxic effluents from DWZ’s piping structure and the Premises onto the Lands, which has caused substantial damage to PGB’s pipeline.
Due to the above, Petronas has demanded for a sum of RM46,754,614.07 from the Company and/or its subsidiaries. Failing which, Petronas will commence legal proceedings against the Company and/or its subsidiaries to recover all sums due and additionally liable for interest and costs.
DWZ is a major subsidiary of the Company. MClean Group does not foresee any material impact to its operations as a result of this Letter of Demand.
That does not sound good.
First of all one should not get in a fight with (by far) the biggest company in Malaysia.
Secondly, RM 47 Million is a rather substantial amount of money for MClean. Its latest cash balance is only RM 13 Million.
Thirdly, one would expect MClean to come with a strong, immediate rebuttal, but instead it rather "casually" mentioned:
The Company has engaged a solicitor to look into the matter and shall make such further announcement on the development on the above matter as and when necessary.
what's your intention trying to create panic sell so u can buy cheap? management took it "casually" because is peanut thing easily solved....ReplyDelete
I have zero intention to buy MClean's shares, now or in the future.ReplyDelete
I don't think the Petronas allegations are a small matter, nor do I think it can be easily solved.
Let's wait and see.