PETALING JAYA: Sime Darby Plantation Bhd (SDP) is facing a RM1.72bil legal suit in Indonesia, after a civil claim was filed against the company and four of its direct and indirect subsidiaries by PT Asa Karya Multi Pratama.

       In a filing with Bursa Malaysia, SDP said on March 21, 2022, it was told that PT Asa Karya had filed the suit against the company, Guthrie International Investments (L) Ltd, Mulligan International BV, PT Anugerah Sumbermakmur and PT Minamas Gemilang.

       The legal suit is about an alleged deal by PT Anugerah and PT Minamas to sell PT Ladangrumpun Suburabadi (LSI) and PT Sajang Heulang (SHE) for RM483mil to PT Asa Karya.

       PT Asa Karya alleged that it had made a down payment to PT Anugerah and PT Minamas, but the down payment was returned later.

       Among other allegations, PT Asa Karya also alleged that the conditional sale and purchase agreement that was due to be signed on Sept 1, 2021 was not executed, PT Anugerah and PT Minamas acted in bad faith by denying the existence of the deal, and SDP had told its subsidiaries not to proceed with the deal.

       PT Asa Karya is seeking legal relief including an order for the sale of LSI and SHE to be executed, material compensation of RM258mil and immaterial compensation of RM1.46bil for, among others, loss of reputation.

       SDP said it had been advised by its solicitors in Indonesia that the company and all defendants had sufficient legal basis and merits to defend their position in this claim.

       The claim is also misdirected to SDP because, among others, the company does not have any contractual relationship with PT Asa Karya.

       SDP will make further announcements on material developments on this matter.