News

Material Litigation

We refer to our announcements dated 15 May 2017, 27 November 2017, 29 November 2017, 14 May 2018, 1 July 2019, 4 October 2021 and 21 October 2021 pertaining to the defence on a Motion to Add and Correct Complaint against Narita Motorcare (Cambodia) Co. Ltd (“Narita”), Mr. Long Narith and Ms. Pich Sokhom, the representatives of Narita (collectively, the “Plaintiffs”) filed by ETCM (C) Pty Ltd (“ETCM(C)”) and Tan Chong Motor (Cambodia) Pty Ltd (“TCMC”) (collectively, the “Defendants”), both wholly-owned subsidiaries of Tan Chong Motor Holdings Berhad (“Company”).   

The Company wishes to inform that ETCM(C) and TCMC, through its Solicitors, had received notification that the Supreme Court, on 16 May 2022, upheld the Court of Appeal Decision of 29 July 2021 as follows and ruled that ETCM(C) and TCMC are not entitled to any damages:

(1) ETCM(C) and TCMC to pay damages of USD3,953,130 to Narita; and

(2) litigation cost shall be borne by ETCM(C) and TCMC.

ETCM(C) and TCMC are awaiting the written judgment from the Supreme Court.

Further announcements on any further material development would be made to Bursa Malaysia Securities Berhad.

The Supreme Court’s decision is expected to reduce both the earnings per share and the net assets per share of the Group by 2.7 sen for the financial year ending 31 December 2022.

This announcement is dated 24 May 2022.

Announcement Info