Puncak Niaga Holdings Bhd has decided to drop its RM14 billion lawsuit against the Selangor state government, which it had filed six years ago.
The lawsuit stemmed from a dispute over the state’s takeover of its water industry in 2017.
Puncak Niaga claimed that the state’s actions forced the takeover and sought compensation for the difference between the sale price and its valuation of the water companies, as well as loss of business opportunities.
The company discontinued the lawsuit at the Shah Alam High Court, citing the fact that the case had not yet proceeded to trial after six years.
The decision was influenced by changes in the business environment affecting Puncak Niaga, as the company operates solely in Malaysia and wanted to avoid further legal expenses, it told the bourse today.
In addition to the Selangor state government, Puncak Niaga had named two former Selangor MBs, Abdul Khalid Ibrahim and Mohamed Azmin Ali, as defendants, accusing them of abuse of power in the federal government’s involvement in the water industry takeover.
Abdul Khalid was the Selangor MB from 2008 to 2014, while Mohamed Azmin served until 2018.
When the case was reinstated in 2021, Abdul Khalid was brought back as a defendant, but Mohamed Azmin was not.
Puncak Niaga shifted its focus away from the water industry and exited it by 2018.
The company’s main business segments now include plantation, facilities management, and environmental engineering and construction, particularly sewerage treatment plant projects.