Chai to file RM100mil lawsuit against Harvest Court and its directors

By Sharen Kaur
Published in NST on June 17, 2014

KUALA LUMPUR : DATUK Eddie Chai Woon Chet, the new substantial shareholder of Harvest Court Industries Bhd (HCIB), says he will file a RM100 million law suit against the company and its board of directors for defamation.

Chai said he does not own 33 per cent of HCIB that could trigger a mandatory general offer (MGO) of the company, as claimed by its managing director (MD) Datuk Raymond Chan Boon Siew.

"I have no knowledge on the MGO and neither do i have any link with Kenneth Voon, as reported. I am an investor, who sees good potential in HCIB. Doesn't mean HCIB is loss-making, it can't turn around," Chai said at a press conference here yesterday.

Chai, the son of Sabah timber tycoon Tan Sri Chai Kin Kong, now controls 19.55 per cent of HCIB, via his private investment vehicle Zenith City Investments Ltd.

The Sabahan, who is also the MD of Astral Supreme Bhd and XOX Bhd, has been actively raising his stake in HCIB since May 7, from 10.1 per cent.

"I will raise my stake in HCIB, but the plan is not to trigger an MGO," Chai said.

Last month Zenith City served a summon against HCIB and its directors including Chan, for not disclosing information on his substantial shareholding in a circular to shareholders calling for an annual general meeting (AGM) on June 24.

There are six resolutions to be passed at the AGM, including re-electing Chan as a board member.

Zenith City is taking legal action against them for failing to act on its notice dated May 12 requesting certain resolutions to be considered and passed at the AGM.

It had proposed the appointment of Chai, Wong Kwai Wah and Datuk Seri Abdul Azim Mohd Zabidi to the board of HCIB.

Chai was tight lipped when asked whether he will stop the re-election of Chai and other board members at the AGM.

"We see what happens at the AGM. If i am appointed to the board of HCIB, I will inject several on-going property development projects worth over RM1 billion into the company.

"Under Zenith group, I also have building construction projects worth several hundred millions of ringgit. These projects are churning profits. I plan to inject them into HCIB, and return it to profitability," Chai said.