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KUALA LUMPUR (Sept 22): Sedania Innovator Bhd’s major shareholder Sedania Corp Sdn Bhd (SCSB) has been ordered by the High Court to compensate RM14.52 million to two individuals claiming to own a 49% stake in Sedania’s consumer healthcare products business.
The company involved is Offspring Inc Sdn Bhd. Sedania acquired 51% of Offspring for RM15.12 million cash from its 31.31% shareholder SCSB, which is owned by the listed company’s managing director Datuk Noor Azrin Mohd Noor and his wife Datin Noraida Saludin, in November 2020.
By mid-November 2020, two individuals, Karine Low and Tan Kien Yeow, served a letter of demand to Sedania, claiming that they have 49% interest in Offspring via an agreement entered with SCSB in 2018.
Low and Tan had initiated an arbitration against SCSB and Offspring to claim damages for their rights and interest, but the statement of claim did not seek a specified claim amount, according to Sedania’s stock exchange filing.
Sedania said it had received a court order on Sept 21 which Low and Tan had obtained to recognise and enforce the arbitration award.
Offspring has been ordered along with SCSB to pay the RM14.52 million in damages. Both are also required to bear the cost of arbitration at the Asian International Arbitration Centre amounting to RM416,358 and legal-related costs of RM365,937.
Sedania estimated that the financial impact on its 51%-owned Offspring could be totalling RM17.46 million. However, Sedania said SCSB will continue to indemnify the company from any potential claims relating to the above.
A spokesperson of Sedania later confirmed that SCSB will also indemnify Offspring from the same.
Offspring will also be filing an application to stay or set aside the court order, Sedania’s filing showed.
Sedania updated that currently, it still owns a 51% stake in Offspring, while the remaining 49% stake remains with SCSB.
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