Paramount said the suit is unlikely to impact its finances, as the SPA signed in December 2024 allows TBSB to cancel the deal and claim a refund if legal issues block the transaction.
KUALA LUMPUR (April 11): Paramount Corp Bhd (KL:PARAMON) said its 70%-owned unit, Tanah Bayumas Sdn Bhd (TBSB), and two others are being sued over its RM145 million purchase of a luxury condominium site in Taman U-Thant.
The lawsuit seeks to block the transaction, failing which it demands RM313 million in damages — double the deal’s value.
Filed in the Kuala Lumpur High Court’s commercial division on March 7, Prismaworld Embassyview Sdn Bhd, the property’s owner which is under receivership, has named TBSB as the first defendant, along with Datuk Adam Primus Varghese Abdullah and Macpherson Simon of Adamprimus & Co as the second defendants, and RHB Bank Bhd (KL:RHBBANK) as the third defendant.
Prismaworld is seeking to void the sale and purchase agreement (SPA) signed on Dec 12, 2024, between TBSB and the receiver and manager, Adamprimus & Co and a declaration that RHB Bank breached its duties as a lender holding a legal charge over the property.
Prismaworld is seeking a court order to stop TBSB, Adamprimus & Co, and RHB Bank from dealing with the property until the case is resolved, and wants RHB Bank to take all steps needed for it to fully redeem the property.
Alternatively it is seeking an order that the three named in the suit are jointly liable to pay damages in the sum of RM313 million.
Should Prismaworld be able to gain back ownership of the property, it plans to sell it to Al Shamal LLC-FZ.
The High Court will hear the injunction on May 20.
Paramount said the suit is unlikely to impact its finances, as the SPA signed in December 2024 allows TBSB to cancel the deal and claim a refund if legal issues block the transaction. TBSB has appointed legal counsel and believes it has a strong defence to resist the injunction application.
TBSB bought the Taman U-Thant property to boost its land bank. It was especially coveted for its location about 700 metres from Paramount’s existing high-end developments, The Atrium and The Ashwood, offering an opportunity to replicate the success of these projects. The project is expected to have a gross development value (GDV) of at least RM300 million over five years.
Shares of Paramount closed up two sen or 2.11% to 97 on Friday, giving the group a market capitalisation of RM604.09 million.
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Source: EdgeProp.my
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