KUALA LUMPUR: Puncak Niaga Holdings Bhd has decided to discontinue a RM13.5 billion suit against former Selangor Menteri Besar (MB), the late Tan Sri Abdul Khalid Ibrahim, and the state of Selangor, for alleged abuse of power in the acquisition of the company's water concessions, after six years of defending its suit.
The suit revolved around a 2014 share purchase agreement between Puncak Niaga and Pengurusan Air Selangor Sdn Bhd.
The company, in a filing with Bursa Malaysia Securities, said it filed a discontinuation application of the suit at the Shah Alam High Court, which led to it being struck out.
The announcement comes days after a Shah Alam High Court case management date, after trial dates previously fixed on October 2 to 5, 2023 and October 9 to 12, 2023, were vacated.
Puncak Niaga which initially named Khalid, former Menteri Besar Datuk Seri Azmin Ali and the Selangor state in its suit, spent between 2017 and 2021 defending its suit against motions to strike by both Khalid and Azmin.
Both Khalid and Azmin successfully struck out the suit against them.
The Court of Appeal however, allowed Puncak Niaga's appeal to reinstate Khalid and the Selangor government as defendants, in February 2021.
In June 2021, the company was given leave by the Federal Court to go to trial for its suit against Khalid and the state. Khalid passed away in July 2022.
Puncak Niaga in a filing with the bourse today said, the discontinuation of its claim will enable Puncak Niaga to reduce incurring more resources and further costs to pursue the matter in court.
"Due to evolving changes in the challenging business environments regulating Puncak Niaga and Puncak Niaga group of gompanies where the company's/ group's operations are entirely in Malaysia, the discontinuation of Puncak Niaga's claim will allow Puncak Niaga to focus on the pursuit of its business objectives and strategies towards the long term sustainable growth of Puncak group of companies," the company said in its filing with the bourse.
Puncak Niaga posted a net loss of RM14.14 million against RM126.54 million revenue for the first six month of the financial period June 30, 2023. It currently has a concession agreement to build teaching hospitals for the government, along with construction and plantation businesses.