MAS made an official announcement on June 22, 2012 to Bursa Malaysia regarding the suit with former executive chairman Tan Sri Dato’ Tajudin Ramli (TSDTR). This is an imporant suit, and it has been dragging on for a long time (TSDTR was attached to MAS until 2001, 11 years ago). The content of the announcement:
"We wish to announce that MAS and TSDTR have reached an agreement to settle the legal suits concerned on terms. As a result, the legal suits and all counter-claims in the legal suits against MAS will be withdrawn."
According to thisarticle in The Malaysian Insider:
(Tajudin) has agreed to surrender valuable land in Langkawi where the Four Seasons Hotel stands,” a court source told The Malaysian Insider on condition of anonymity.
But if thatis true, why was it not revealed in the announcement to Bursa Malaysia?
On June 25, 2012 MAS came with a new announcement.
a) the parties in KLHC Suit No: S3-22-634-2006 will complete the
Sale and Purchase Agreement dated 16 June 1997 (“SPA”) in which MAS purchased certain lands in Langkawi. MAS had sought to enforce the SPA by way of specific performance. This will result in the remaining land purchased (a 21 acre portion of the land held under HS(D) 623, Mukim Ayer Hangat, Daerah Langkawi) to be effectively transferred to MAS upon payment of the agreed balance purchase price of RM4,001,622.50 that is still outstanding under the SPA;
b) all Counter-claims in KLHC Suit No: S3-22-634-2006, KLHC Civil Suit No: S7-22-487-2006 and SAHC Civil Suit No: MT3-22-365-2006 are to be withdrawn against MAS and parties related; and
c) MAS and parties related will withdraw its claims in the above legal suits.
There is no adverse financial or operational impact on MAS arising from the settlement. MAS will not be incurring any financial or operational loss.
I find the announcement puzzling at best, and itthrows up more questions than it answers, for instance:
What are the details of the SPA of 1997?
Why does it take 15 years to complete the SPA?
The claims against TSDTR and others were very specific and serious in nature, totalling many hundreds of millions of RM, why arethey settled with a parcel of21 acre land which even has to be purchased?
The claims, as detailed in the 2011 year report:
The Annual General Meeting of MAS has just been held, soshareholders have to wait almost one year to air their possible grouses regarding this settlement.
I doubt if they are happy with the performance, this is the 5-year chart of MAS:
The MAS group has accumulated losses of more than RM 8,000,000,000.