Thailand
Cambodia: PPSP retains CEZ control despite claims of deal breach
Singapore-registered Colben System Ptd Ltd and British Virgin Islands-registered Colben Energy Holdings (PPSEZ) Ltd have withdrawn their claims after they lodged a notice of arbitration at the Singapore International Arbitration Centre alleging that Royal Group Phnom Penh SEZ Plc (PPSP) had breached certain terms of a joint venture entered into by PPSP and one of the claimants, said a latest PPSP report.
The report pointed out that Colben System and Colben Energy Holdings lodged the notice of arbitration to the centre in November 2020, but PPSP’s lawyer concerning the litigation responded to the claim by two foreign firms on March 18, 2022. The former is a 51 percent associate of PPSP and the holding company of the latter.
According to PPSP’s lawyer, PPSP brought a counterclaim against them for alleged breaches of the arbitral confidentiality by reason of the claimants communicating the existence of the arbitration and the underlying dispute to third parties, including their ultimate parent company, which then publicised the same way of inter alia SGX announcements on November 19, 2020.
“The claimants have since withdrawn their claims entirely and on terms that prevent them from pursuing the same claims in future and have also agreed to make payment to the company of its costs of defending the claims,” said the report that refers the company to PPSP. The Singapore International Arbitration Centre made a final award on April 25, 2022.
Wong Pang Nam, Deputy Chief Financial Officer of PPSP, told Khmer Times via email on Wednesday that Colben System PTE Ltd is registered in Singapore and is the holding company of Colben Energy Holdings (PPSEZ) Ltd (CEHZ), which is registered in the BVI—British Virgin Islands—who in turn holds 49 percent of Colben Energy (Cambodia) PPSEZ Ltd (CEZ).
“The claimants withdrew their claims because they knew their claims were frivolous from the start and were just trying their luck. These companies to the best of our knowledge are just shell companies with no real commercial businesses,” said Pang Nam. The final award states that the claimants were to pay PPSP the sums of $346,343 and $112,577 in relation to the costs incurred by PPSP in consequence of the withdrawal of their claims in the arbitration.
The final award pointed out that PPSP received the full payment from Colben System and Colben Energy Holdings on June 20, 2022, and also settled the full payment of $76,606 to the claimants as per the final award. “The company’s counterclaim is dismissed. The final award is in full settlement of all claims in connection with the counterclaim by the company and also the arbitration,” it says.
The document also stated that the fees and expenses of the arbitration and the tribunal incurred in the arbitration were to be shared between the parties to the arbitration in the proportion 75 percent by Colben System and Colben Energy Holdings of $64,397 and 25 percent shared by PPSP of $21,466, according to the report.
The Directors’ report and audited financial statements for the financial year ended December 31, 2022, were released on the Cambodia Securities Exchange (CSX) on Tuesday when Khmer Times also received a copy of the notification on the change of control CEZ from PPSP after Phnom Penh Municipal Court issued a ruling on the provisional disposition on March 22, 2023.
The notification dated on M pointed out that the ruling was issued for the provisional disposition of CEZ—51 percent held by PPSP and 49 percent by CEHZ—to effectively remove
the current management of
CEHZ from CEZ and be
replaced the management from PPSP with immediate effect, which would provide benefits to both parties of the matter.
“This is a very welcome move for PPSP and CEZ as we view this as accretive to the earnings of CEZ resulting ultimately for the benefits of both the shareholders of CEZ,” said the notification. Pang Nam said PPSP still maintains its original shareholding at 51 percent in CEZ. “We are of the view that we can manage the Company better… and eventually be able to perform better in terms of profits,” he said.
Source: https://www.khmertimeskh.com/501265408/ppsp-retains-cez-control-despite-claims-of-deal-breach/