Material Litigation

Reference is made to Section 16.4 of Radium’s prospectus dated 27 April 2023 in respect of material litigation for Lot 810 under development by Pavilion Integrity Sdn. Bhd. (“PISB”), an 80%-owned subsidiary of Radium.

The Board of Directors of Radium wishes to announce that the PISB’s solicitor had updated the Company on the outcome of hearing for the Leave to Appeal Against the Court of Appeal Decision held on 21 June 2023.

After hearing extensive oral submissions by all counsels, the Federal Court, however, dismissed all six (6) motions for Leave to Appeal Against the Court of Appeal Decision. Further, the Federal Court dismissed all the motions with costs of RM90,000.00 to be paid to the Respondents of the respective motions subject to allocator.

In view of the decision by the Federal Court, the Board of Directors of Radium was advised by PISB’s solicitors that the order by the Court of Appeal on 3 October 2022 stands. Among others, the Court of Appeal held as follows: -

“An order of mandamus is granted towards DBKL to issue a Notice of Acquisition under Section 47(3) of the Federal Territory (Planning) Act 1982 to commence acquisition of Lot 810.”

As such, PISB expects a compulsory acquisition of Lot 810 by DBKL wherein PISB will be compensated in accordance with the Land Acquisition Act 1960. Following thereto, the financial impact to Radium via the compensation to be received and the compulsory acquisition of the development project on Lot 810 by DBKL, is expected to include the refund and compensation of progress billings to PISB’s purchasers, compensation to PISB’s contractors due to termination of construction contracts and the loss of revenue and profit from the development project.

Pending the final compensation consideration to be received from DBKL, the Board of Directors is of the view that the outcome of the hearing will not have any material financial impact on the Radium Group for the financial year ending 31 December 2023.

Further announcement will be made in the event of material development on the matter.

This announcement is dated 22 June 2023.

Announcement Info