1. INTRODUCTION

Selangor Dredging Berhad (“SDB” or “Company”) wishes to announce that its wholly-owned subsidiary, SDB Properties Sdn. Bhd. (“SDBP” or “Defendant”) was served with a Writ of Summon dated 21 November 2024 by Rubyverse Sdn. Bhd. (“Plaintiff”) through their solicitors in the evening of 25 November 2024 (“Suit”).

2. CIRCUMSTANCES LEADING TO THE WRIT ACTION

SDBP has received the above Suit which among others contends that SDBP has breached the Tenancy Agreement (“TA”) dated 1 September 2022 by failing to renew the tenancy of the premises known as Events @ Hotel Maya, Level 13, Hotel Maya Kuala Lumpur, 138 Jalan Ampang, 50450 Kuala Lumpur, Meranti Meeting Room of Level 3A, Plaza 138, 138 Jalan Ampang, 50450 Kuala Lumpur together with a bare office unit (“Premises”) for a further term of two (2) years from 1 September 2024 to 31 August 2026 (“Renewal Term”). Based on the alleged breach, the Plaintiff has now filed the Suit against the Defendant to claim for, inter alia, damages in the sum of RM2,100,052.00 being losses pleaded in paragraph 32.2 of the Statement of Claim (“SOC”) and damages in the sum of RM1,528,800.00 for losses pleaded in paragraph 32.5 of the SOC.

3. PARTICULARS OF CLAIMS

The particulars of the claims are as follows:- a) A declaration that the Notice of Renewal dated 30 May 2024 served by the Plaintiff is valid; b) A declaration that the Defendant’s notices to terminate and not renew the TA respectively dated 21 June 2024, 23 July 2024 and 13 August 2024 is invalid; c) A declaration that the termination of the TA by the Defendant was unlawful; d) General damages; e) Aggravated damages; f) Exemplary damages; g) Interest at 5% per annum commencing from the date of filing of the Suit up the date of judgment; h) Interest at 5% per annum commencing from the date of judgment up to date of full realisation; i) Cost; j) Such further and/or other reliefs that the Honourable Court deems just and proper.

4. OPERATIONAL AND FINANCIAL IMPACTS ON THE COMPANY

The Company does not expect that there will be any material operational and financial impact to SDBP and SDB from the Suit for the financial year ending 31 March 2025.

5. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

None of the Directors, Substantial Shareholders, or persons connected to them has any direct or indirect interest in the Suit.

6. STEPS TAKEN

SDBP has entered appearance on 26 November 2024 and case management by way of e-review has been fixed on 23 December 2024. SDBP is currently seeking legal advice and will make further announcement on any material development in the Suit in due course.

This announcement is dated 27 November 2024.