Carrefour Malaysia seems to have full control of its business here following the Court of Appeal's ruling to overturn an injunction granted to its Malaysian minority shareholder.The judgment enables Carrefour to execute the transfer of shares from its 30 per cent Bumiputera partner Hartajaya Harmoni Sdn Bhd.
Hartajaya, however, plans to appeal against the decision.
Hartajaya had previously requested the High Court to grant an injunction on the transfer of shares, pending the decision of an oppression suit filed by it on November 10 last year.
Its local partner is suing Carrefour for exercising its call option at a prescribed fee of RM23 million, which is the initial investment sum for Hartajaya's 115.71 million shares. This would give it no return on its investment.
Hartajaya is arguing that it should be paid higher, considering the bids that Carrefour had received when it announced the sale of its stores here.
Hartajaya's counsel Gideon Tan of Gideon Tan Razali Zaini said it plans to appeal the decision of the Court of Appeal.
"Hartajaya will proceed to seek leave for appeal to the Federal Court within the next two days, and apply for an injunction to prevent the transfer of shares," Tan told Business Times. Hartajaya is majority-owned by former rural and regional development minister Tan Sri Aziz Shamsuddin.
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Carrefour in Malaysia is operated under the name Magnificient Diagraph Sdn Bhd.
Meanwhile, Carrefour's counsel, Chew Kherk Ying of Wong & Partners, said it plans to file an application in the High Court to assess damages for losses as a result of the injunction imposed.
Arief Emran Arifin, co-counsel for Carrefour, said that the injunction was part of the reason rendering it unable to proceed with the sale of its Malaysian business.
The French retailer had cancelled initial plans to sell its Malaysian business citing low bids and promised to invest and expand instead.
"In the meantime, we have actually filed a stay of the (oppression suit) case pending arbitration. We want it to be arbitrated instead of having to go before the courts," Emran said.
The remaining shareholders of Magnificient Diagraph are Carrefour Netherland BV (CNBV) (26.06 per cent), Carrefour Malaysia Sdn Bhd (9.33 per cent), and Mildew BV (34.61 per cent).
- Business Times
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