Sapura Holdings Sdn Bhd (SHSB) director Shahriman Shamsuddin on Friday denied undermining negotiations to resolve Sapura Resources Berhad’s (SRB) financial obligations to its joint venture partner over the construction of Sapura Permata, claiming SRB would not benefit from staying in the project.
Cross-examined by lawyer S Rabindra, Shahriman agreed that elder brother Shahril had been appointed on April 13, 2023 by the SRB board led by chairman Ahmad Jauhari Yahya to negotiate directly with KLCC Holdings Sdn Bhd (KLCCH) regarding Project Apex, referring to the development of the group’s 52-storey office tower.
Rabindra: So, the deadline (set by KLCCH) for SRB to revert (on its settlement proposal) was April 17, 2023, at noon. Is that right?
Shahriman: Yes.
In his petition, Shahriman said that he had, on April 17 itself, accepted a proposal by KLCCH to buy out SRB’s interest in Project Apex for RM85 million, subject to board approval.
He claimed that he did so in his capacity as SRB’s managing director and in the exercise of his business judgement.
Rabindra: Now you said that Shahril was displeased by your April 17 letter, am I right?
Shahriman: Yes.
Rabindra: Do you agree that Shahril was trying to negotiate for a different outcome?
Shahriman: That seems to be the case.
Rabindra: You know that Shahril had managed to convince KLCCH to proceed with a rights issue on condition that it had to be settled by May 2, 2023.
Shahriman: Yes.
Rabindra: Your letter undermines Shahril’s efforts.
Shahriman: Disagree.
Rabindra: Shahril was rightly unhappy about the tactics you used to undermine and jeopardise SRB remaining in Project Apex.
Shahriman: Disagree.
Earlier, Shahriman was shown another email he wrote to several members of the SRB board dated April 12, 2023.
Rabindra: You sent this email to circulate a letter dated April 12, 2023 from KLCCH rejecting SRB’s April 10 proposal. Am I right?
Shahriman: Yes.
Shahriman agreed that the email set out two options available to SRB — either accept KLCCH’s buyout proposal and exit Project Apex or authorise someone to negotiate directly with KLCCH to take over Permata Sapura.
He, however, dismissed a third option, which involved Shahril persuading KLCCH to extend its deadline to allow the SRB board to come up with a funding solution.
Explaining why, Shahriman claimed it would have been “bad” for SRB to remain in Project Apex as it would involve “taking more unauthorised money from SHSB”.
Rabindra: You had by this time (April 12, 2023) already communicated a formal desire to exit the Sapura Group. Yes or no?
Shahriman: Yes.
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.
The petition names SHSB, Shahril and Rameli as the respondents.
In the petition, Shahriman claims that an irreparable breakdown in mutual trust and confidence between Shahril and him, particularly over Project Apex, necessitates SHSB’s dissolution.
The respondents oppose the petition, contending that SHSB was never intended as a family business, and that dissolution would be neither just nor equitable.
The proceedings continue before Justice Leong Wai Hong at the High Court here on Monday.
