by RUPINDER SINGH

ATLAN Holdings Bhd (AHB) said it intends to protest the compensation awarded for the compulsory acquisition of land owned by its subsidiaries, Cergasjaya Sdn Bhd and Cergasjaya Properties Sdn Bhd (CPPA), which are held through Duty-Free International Limited (DFIL).

The two parcels of land, located in Bukit Kayu Hitam, Kedah, are being acquired by the Ministry of Home Affairs (KDN) for the construction of a road connecting the Bukit Kayu Hitam ICQS Complex to the Sadao CIQ facility in Thailand.

Cergasjaya owns the Duty-Free Complex in Bukit Kayu Hitam, while CPPA holds the lease for three plots of land from Kedah State Development Corporation (PKNK).

In an update provided by AHB’s board of directors, the company referred to DFIL’s announcement made on November 12, 2024, to the Singapore Exchange Securities Trading Limited.

During the land acquisition enquiry on November 6, 2024, the Land Administrator awarded a compensation amounting to approximately RM69.9 million.

However, AHB expressed its dissatisfaction with the compensation figure.

Following legal advice, the company has decided to accept the award “under protest” and intends to file an objection through a land reference to the High Court, as outlined in Sections 37 and 38(1) of the Land Acquisition Act 1960.

“While we understand the necessity of infrastructure development, we believe the compensation does not reflect the true value of the land being acquired. We are committed to ensuring a fair and just outcome through the legal process,” said DFIL ED Lee Sze Siang.

Atlan Holdings has indicated that it is unable to assess the financial impact of the compulsory acquisition until the High Court review is concluded.

Previously, DFIL had said that the compulsory land acquisition will lead to the closure of Cergasjaya’s duty-free business