The legal dispute, which started six years ago, centred on the divestment of the land by Star Media to JAKS Resources in 2011, in return for JAKS Resources building a 15-storey office building for Star Media on the site.
KUALA LUMPUR (Nov 6): JAKS Resources Bhd (KL:JAKS) on Wednesday said it has agreed to pay RM5 million cash to Star Media Group Bhd (KL:STAR) to settle their legal dispute over the development of a parcel of land in Section 13, Petaling Jaya.
The cash settlement will be paid within 12 months, the construction and power utility group said in a filing to Bursa Malaysia, providing more details on the settlement agreement inked on Monday.
The legal dispute, which started six years ago, centred on the divestment of the land by Star Media to JAKS Resources in 2011, in return for JAKS Resources building a 15-storey office building for Star Media on the site.
JAKS added in its Wednesday filing that the company will transfer the title of Tower A to Star Media within three years.
If JAKS fails to transfer ownership by the deadline, it will be liable to pay Star Media a 5% annual interest payment on the sum of RM134.5 million until the transfer is completed, the filing read.
JAKS reiterated that both parties have agreed to withdraw all lawsuits and counterclaims, with no order as to costs and without liberty to file fresh claims as announced on Monday.
“Save for the settlement amounts to be paid, the settlement agreement is not expected to have any material financial or operational impact to the group,” JAKS added.
Shares of JAKS finished half a sen or 3.7% to 14 sen on Wednesday, giving the company a market capitalisation of RM364.96 million.
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Source: EdgeProp.my
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