News & Announcements

13 May 2009
PERWAJA HOLDINGS BERHAD ("the Company" or "Perwaja") - DISPUTE WITH PETRONAS

On behalf of the Board of Perwaja, we wish to inform the following:

1. There had been negotiations with the Government of Malaysia (“GOM”) over the revision of natural gas price for the supply of gas by Petronas to the Company in line with the prevailing international price with the applicable discount.
   
   
2. In the interim, Perwaja made full payment to Petronas based on international market natural gas price less discount accorded by GOM.
   
   
3. In view of this, Perwaja continues to seek amicable resolution with GOM in continuing discussion on this matter.
   
   
4. On 12.05.2009 late afternoon, Perwaja received a Writ of Summons and a statement of claim from Petronas, for the sum of RM85,795,957.30 together with a claim for interest with reference to the total amount invoiced (but disputed by Perwaja). This difference is in principle due to the Perwaja’s natural gas price computation based on the negotiations with the GOM (including the international price and the relevant discount), and Petronas own price.
   
   
5. Perwaja will enter an appearance, through its solicitors, within the time limited and defend the suit.
   
   
6. The Board of Directors, despite the ongoing discussion with the GOM, had on the advice of its auditor, made full provision for the difference between Perwaja’s price and Petronas’ price for the audited financial statements for the financial year ended 31 December 2008. In view of this, the Board is of the opinion that there will be no financial or operational impact on the Company and the Group.