KUALA LUMPUR (Aug 8): Berjaya Assets Bhd (KL:BJASSET) said it has settled its suit over pulling out of a 2016 deal to acquire the remaining 50% stake in Sarawak gaming firm Megaquest Sdn Bhd.

In an announcement on Bursa Malaysia, Berjaya Assets said that all parties involved in the suit had agreed to resolve the litigation on the basis of no admission of liability by way of a consent judgement.

Tan Sri Vincent Tan Chee Yioun, Berjaya Assets’ ultimate largest shareholder and one of the defendants of the suit, had agreed to pay the entire settlement sum pursuant to the consent judgement.

The quantum of the settlement sum to be paid by Tan was not disclosed in the filing.

However, in the originating summons of the suit filed by Violet Circle Sdn Bhd against Tropicfair Sdn Bhd, the plaintiff sought for the defendant, a wholly-owned subsidiary of Berjaya Assets, to pay RM97.6 million as at Oct 11, 2016, with 6% interest per annum accruing on a daily basis.

Upon full payment, Tan would assume the 50% stake in Megaquest from Violet Circle. Berjaya Assets would retain its existing 50% stake in the gaming firm.

“Hence, the resolution of the above litigation will not have any adverse financial impact on the Berjaya Assets group,” the company said.

Based on prior bourse filings, Violet Circle brought Berjaya Assets, its wholly-owned unit Tropicfair, and “another defendant” to court in 2022 over pulling out of a share sale agreement with Violet Circle to acquire the remaining 50% stake in Megaquest for RM108 million.

The agreement was inked in July 2016, and the deal was called off in mid-2020.  

Previously, Berjaya Assets said it had incurred RM10.8 million of forfeited deposit and liquidated ascertained damages in the financial year ended June 30, 2020 (FY2020).

In Friday’s filing, Berjaya Assets named Tan as a defendant in the suit.

Shares in Berjaya Assets ended unchanged at 30.5 sen, valuing the company at RM767.69 million.