Latest news with #ShahrimanShamsuddin
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
I was silent at Sapura board meetings, Shahriman tells court
Shahriman Shamsuddin (left) is petitioning to wind-up Sapura Holdings Sdn Bhd, the parent of the Sapura group valued at RM832 million, on account of an alleged breakdown of mutual trust and confidence with elder brother Shahril. KUALA LUMPUR : Sapura Holdings Sdn Bhd director Shahriman Shamsuddin told the High Court here that he did not oppose proposals made by elder brother Shahril to the Sapura Resources Bhd (SRB) board, citing a 'conflict' on account of them being siblings. In cross-examination, lawyer S Rabindra, representing Shahril, questioned Shahriman about complaints contained in his petition to wind-up Sapura Holdings due to an alleged breakdown of mutual trust between the brothers. In the petition, Shahriman had claimed that Shahril was 'effectively cornering' SRB into accepting either a RM100 million loan offered in September 2022, which involved a rights issue, or a RM40 million bridging loan offered by the Sapura group, failing which the company stood to lose its collateralised properties. 'The petitioner (Shahriman) was not consulted on this matter at Sapura Holdings level,' the document said further. Rabindra: Your point here is that Shahril is saying to SRB: 'You have to pay back the RM40 million that was previously advanced (by the Sapura group) unless you agree to carry out a rights issue based on the September 2022 terms and conditions.' Is that a fair summary of what you're saying? Shahriman: Pay immediately or do the rights issue. Another of Shahriman's complaints was that Shahril had written on behalf of Sapura Holdings to SRB, undertaking to provide financial assistance of up to RM152 million without consulting him. He also claimed Shahril had offered to personally underwrite any rights issue by SRB that was not taken up, to a value of RM113 million. Shahriman said this would dilute his position in both SHSB and SRB and break the 'equal joint holdings spirit' laid down by their parents. Rabindra: You mentioned earlier the distinction between Shahril's personal position and that of the company. As a director of Sapura Resources, during the time when letters were being exchanged, did you ever raise the question: 'Was this a private initiative (by Shahril), or an SRB initiative?' Shahriman: I did not raise it because I would have been conflicted. I am his brother and also a shareholder of the holdings. So I had to keep quiet. Rabindra: You sat on the Sapura Resources board with your brother, correct? Shahriman: Yes. Rabindra: You've disagreed with your brother during board meetings before, haven't you? Shahriman: Sometimes, yes, about this matter, too. Rabindra: So, in your capacity as a director of Sapura Resources, you could have raised the question: 'Why are we entertaining a personal proposal by Shahril?' Shahriman: Shahril is my brother. I'm not allowed to say anything at the board (meeting). Rabindra: I put it to you that that is far from the truth. You could have spoken up, you simply chose not to. Do you agree or disagree? Shahriman, however, chose not to respond. Sapura Holdings is the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly-listed SRB. Both Shahril and Shahriman hold a 48% stake each in Sapura Holdings, with the remaining 4% owned by Rameli Musa. In the petition filed last September, Shahriman claims that an irreparable breakdown of mutual trust and confidence between him and Shahril necessitated the dissolution of Sapura Holdings. However, Sapura Holdings, Shahril and Rameli, all named as respondents, oppose the petition, contending that the company was never intended to be a family business and that dissolution would be neither just nor equitable. The hearing before Justice Leong Wai Hong will continue on June 13.
Free Malaysia Today
04-06-2025
- Business
- Free Malaysia Today
Shahriman denies ‘blowing hot and cold' over collateral for Sapura tower
Shahriman Shamsuddin wants the High Court to wind up Sapura Holdings Sdn Bhd citing a breakdown of mutual trust with elder brother Shahril. KUALA LUMPUR : Sapura Holdings Sdn Bhd director Shahriman Shamsuddin today insisted he was not inconsistent as regards using the group's Sapura@Mines property as collateral to fund its business ventures. Testifying in his petition to wind up Sapura Holdings on grounds of a breakdown of mutual trust with elder brother Shahril, Shahriman said he had objected to using the property as collateral for the development of the group's flagship office tower. In his petition, Shahriman had claimed that his 'strained relationship' with Shahril had been 'exacerbated' by the differing opinions they voiced over Project Apex at a special board meeting of Sapura Resources Bhd (SRB) on Jan 31, 2023. Project Apex was the codename given by SRB for its joint venture with KLCC Holdings Sdn Bhd to develop Permata Sapura, a 52-storey office building in the KL city centre. Lawyer S Rabindra, representing Shahril, then referred Shahriman to the minutes of that meeting. Rabindra: At various board meetings and in relation to loan proposals that we've already gone through, you voiced strong concerns and protested the use of Sapura@Mines as collateral for Sapura Holdings' financial assistance, particularly for Permata. Correct? Shahriman: Yes, for Permata. Rabindra: Yet, at the board meeting on Jan 31, 2023, you were comfortable with Sapura Resources using Sapura@Mines as collateral for new projects. Is that correct? Shahriman: For other projects that were going to yield (returns). Rabindra: So there was a risk, according to you, that using Sapura@Mines as collateral for Permata could lead to a loss of the property, but here, you were quite happy to suggest using the same property for new ventures, despite the same risk. Correct? Shahriman: Not correct. Rabindra: But it is the same risk. There is still the possibility of losing the property. Shahriman: We know the negative risk of Permata. But there were other projects that we could have gone into. Rabindra: I suggest to you that you were blowing hot and cold with respect to the use of the Sapura@Mines property as collateral. Shahriman: I disagree. Shahriman also agreed that, in essence, he had wanted SRB to exit Project Apex, while Shahril wanted to remain in it. Rabindra: I'm suggesting to you that this was a difference of opinion between two directors of a public-listed company about what they see as being in the best interest of the company. Do you agree? Shahriman: Agree. That was a difference of opinion. Rabindra: And this was openly discussed at the Jan 31 board meeting. Correct? Shahriman: Yes. Rabindra: So it essentially came down to a commercial disagreement between two directors on a matter of business judgement based on what is best for SRB? Shahriman: On a matter of business judgement, a difference of opinion, yes. Sapura Holdings is the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly-listed SRB. Both Shahril and Shahriman hold a 48% stake each in Sapura Holdings, with the remaining 4% owned by Rameli Musa. In the petition filed last September, Shahriman claims that an irreparable breakdown of mutual trust and confidence between him and Shahril necessitated the dissolution of Sapura Holdings. However, Sapura Holdings, Shahril and Rameli, all named as respondents, oppose the petition, contending that the company was never intended to be a family business and that dissolution would be neither just nor equitable. The hearing before Justice Leong Wai Hong continues.
Free Malaysia Today
03-06-2025
- Business
- Free Malaysia Today
Shahriman's objections delayed Sapura honouring cash call, trial hears
Shahriman Shamsuddin wants the High Court to wind up Sapura Holdings Sdn Bhd, the parent entity of over 40 subsidiaries valued at RM832 million. KUALA LUMPUR : Sapura Holdings Sdn Bhd director Shahriman Shamsuddin was told in court today that his objections resulted in a 16-month delay in Sapura Resources Bhd (SRB) meeting a RM40 million cash call for the development of an office tower. During cross-examination, lawyer S Rabindra, representing elder brother Shahril Shamsuddin, pointed out to Shahriman that Sapura Holdings, SRB's parent company, had made an offer of financial assistance on May 4, 2021. He said the delay stemmed from Shahriman's objection to a proposal by Sapura Holdings that SRB's Sapura@Mines property be used as collateral for the financial assistance. Shahriman agreed that several documents annexed to his petition reflected his concerns over SRB allowing the property to be used as security. The property was eventually offered as collateral, along with two other land parcels in Jalan Tandang and Jalan 219 in Petaling Jaya. In a letter dated Feb 28, 2023, Shahril informed SRB's board of directors that the RM40 million disbursement had been made, with the three parcels of land used as collateral. Shahriman confirmed the letter and its contents in court. However, he refused to acknowledge that Shahril had used his best efforts to find a middle ground to avoid the consequences of a default. He also agreed the financial assistance ensured SRB avoided defaulting on the RM40 million payment to Impian Bebas Sdn Bhd. Impian Bebas is a joint venture between SRB and KLCC Holdings Sdn Bhd to develop Permata Sapura, a 52-storey tower in the KL city centre and flagship building of Sapura Holdings. Rabindra: With financial assistance on offer since May 2021, the payment was only made at the very last moment — on Sept 30, 2022. Do you agree? Shahriman: I don't recall the exact date. Rabindra: Do you agree that the payment avoided the default notice and its negative consequences? Shahriman: It would have been negative if KLCC Holdings had taken action. Shahriman is seeking to wind up Sapura Holdings, the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly listed SRB. Both Shahril and Shahriman hold a 48% stake each in Sapura Holdings, with the remaining 4% owned by Rameli Musa, who is also named as a respondent. In the petition filed last September, Shahriman claims that an irreparable breakdown of mutual trust and confidence between him and Shahril necessitated the dissolution of Sapura Holdings. However, Sapura Holdings, Shahril and Rameli are opposing the petition, contending that the company was never intended to be a family business and that dissolution would be neither just nor equitable. The hearing continues before Justice Leong Wai Hong.
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Sapura Holdings agreed to loan Sapura Resources RM192mil, court hears
Shahriman Shamsuddin is seeking to wind up Sapura Holdings Sdn Bhd, the parent entity of over 40 subsidiaries valued at RM832 million, including Sapura Resources Bhd. KUALA LUMPUR : Sapura Holdings Sdn Bhd (SHSB) director Shahriman Shamsuddin today agreed that the company had approved RM192 million in financial assistance to Sapura Resources Berhad (SRB) six years ago. The assistance was to allow SRB to settle its liabilities in connection with Permata Square, the group's flagship 52-storey office tower at KL City Centre. Cross-examined by counsel S Rabindra, representing elder brother Shahril, Shahriman agreed that the decision was made at a board meeting held on July 23, 2019. Present at the meeting were SHSB's then chairman Shamsuddin Abdul Kadir, Shahril, Shahriman, Rameli Musa, and Sapura Group's chief operating officer, Zarif Hashim. However, Shahriman refused to concede the decision was never reversed. Rabindra: In the course of my cross-examination, I have taken you through the minutes of four subsequent board meetings – on May 21, 2022, Aug 30, 2022, Oct 4, 2023 and Nov 21, 2023. Shahriman: Yes. Rabindra: Could you please confirm that there was no attempt by you at any of these board meetings to reopen or revisit the board decision made on July 23, 2019 to provide the financial assistance to SRB. Shahriman: I disagree. Rabindra then asked Shahriman to pinpoint where the request to revisit the decision contained, but Shahriman's counsel, Gopal Sreeenivasan, interjected: 'My Lord, this is something which can be left to submissions. The position has been put to the witness.' Rabindra: Would you confirm that the decision at the July 23, 2019 meeting to provide financial assistance remained intact? Shahriman: No, the position has changed. Rabindra then told the court he will take the matter up in submissions. Shahriman is seeking to wind up SHSB, the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly listed SRB. He has also named Shahril and Rameli as co-respondents. Both Shahril and Shahriman hold a 48% stake in SHSB, with the remaining 4% owned by Rameli. In the petition filed last September, Shahriman claims that an irreparable breakdown in mutual trust and confidence between him and Shahril necessitated SHSB's dissolution. However, SHSB, Shahril and Rameli oppose the petition, contending that SHSB was never intended as a family business and that dissolution would be neither just nor equitable. The hearing before Justice Leong Wai Hong continues.
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
Sapura Resources assets at risk due to JV default, court told
Shahriman Shamsuddin is seeking to wind up Sapura Holdings Sdn Bhd, the parent entity of over 40 subsidiaries valued at RM832 million, including Sapura Resources Bhd. KUALA LUMPUR : Public-listed entity Sapura Resources Berhad (SRB) defaulted on a joint venture agreement (JVA) in 2022, placing the company's assets at risk, Sapura Holdings Sdn Bhd (SHSB) director Shahriman Shamsuddin told the High Court today. Testifying at the hearing of his petition to wind up SHSB, Shahriman acknowledged that SRB had breached the terms of the JVA by failing to meet a RM40 million cash call made by Impian Bebas Sdn Bhd. Impian Bebas is a joint venture vehicle set up by SRB and KLCC Holdings Sdn Bhd (KLCCH) to develop Permata Square, a 52-storey tower in the KL city centre – the Sapura group's flagship building. Cross-examined by S Rabindra, counsel for elder brother Shahril – a respondent in the petition – Shahriman conceded that a default would have carried 'onerous' consequences. Rabindra: If SRB defaults under the JVA, does KLCCH have the right to acquire SRB's properties at a 20% discount? Shahriman: Yes. Rabindra: And no one wanted that to happen, as indicated in your letter to KLCCH dated Aug 1, 2022? Shahriman: Yes. To avoid the consequences of a default, Shahriman said he issued the Aug 1 letter to KLCCH which contained a 'without prejudice' offer to resolve the matter, hoping for a positive response. Rabindra: Would you agree that KLCCH was uninterested in responding (to your letter)? Shahriman: Yes. Rabindra then pointed to a statement in Shahriman's petition which referenced a subsequent SRB board meeting, held on Sept 7, 2022, where several potential solutions were discussed. The lawyer also referred to the minutes of that meeting, said to contain a proposal made by Shahril – dubbed Option 4 – which involved selling SRB's stake in Permata Tower. Rabindra: (Was) Option 4 (discussed) within SRB's board? Shahriman: No. Shahriman is seeking to wind up SHSB, the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly listed SRB. Both Shahril and Shahriman hold a 48% stake in SHSB, with the remaining 4% owned by Rameli Musa, also named as a respondent. In the petition filed last September, Shahriman claims that an irreparable breakdown in mutual trust and confidence between him and Shahril necessitated SHSB's dissolution. However, SHSB, Shahril and Rameli oppose the petition, contending that SHSB was never intended as a family business and that dissolution would be neither just nor equitable. The hearing continues before Justice Leong Wai Hong.
