We refer to the announcements made on 4 July 2012, 9 July 2012, 24 September 2012, 12 April 2013, 3 May 2013, 23 May 2013, 8 August 2018, 7 November 2018, 13 March 2019 and 1 April 2019.

Subsequent to the Court’s  dismissal of Global Upline Sdn Bhd’s  (“GUSB”) application to set aside the Arbitral Tribunal’s Final Award  in favour of KKB Builders Sdn Bhd (“KKBB”), a wholly-owned subsidiary of KKB Engineering Berhad (“KKB/ the Company“), the Board of Directors of KKB wishes to announce that KKBB and GUSB have reached an amicable settlement with the following terms and conditions:-

1)  That KKBB is agreeable to accept a sum of RM4,000,000.00 inclusive of interest and costs in settlement of the said Arbitration Award dated 31 July 2018 (“the Final Award”)

2)  The said sum of RM4,000,000.00 is to be paid by two (2) equal monthly instalments in the form of two (2) post –dated cheques as follows:-

      a)  The first instalment of RM2,000,000.00 is to be paid on or before 31 July 2019; and

      b)  The second instalment of RM2,000,000.00 is to be paid on or before 30 August 2019.

3)  That GUSB withdraws immediately all Appeals relating to the above matter, with no order as to costs.

4)  That in default of any one payment and the withdrawal of all appeals, the original sum or balance thereof under the Final Award inclusive of interest and costs of all court proceedings shall immediately become due and payable without demand and KKBB shall be at liberty to proceed with appropriate action to recover the same.

Financial Impact

The settlement sum is expected to have a positive impact to the Group’s financial results in 3Q19 and the Directors of KKB are of the opinion that the settlement is in the best interest of the Company and the Group.

This announcement is dated 16 July 2019.