Claim is frivolous and baseless, will engage legal firm in China, says Ranhill

PETALING JAYA: Ranhill Holdings Bhd, whose wholly owned subsidiary Ranhill Water Technologies (Cayman) Ltd (RWTC) was served with summons in China, said that the claim is frivolous and baseless.
In a filing with Bursa Malaysia today, the company said that the claimant, Wahtoting Holding Limited, has no merit and that RWTC will engage a legal firm practising in China to represent itself against the claim.
On Tuesday, RWTC was served with summons from the court of the People’s Republic of China claiming for alleged unpaid fees amounting to RMB19.94 million (about RM12.76 million) pursuant to an agreement dated Aug 19, 2014. RWTC is the second defendant.
The claim is also being made against its associate companies, Ranhill Water (Hong Kong) Limited (RWHK) and Ranhill Technologies (Shanghai) Ltd.
The claimant, Wahtoting, was appointed by RWTC to source for a party to acquire the interest in RWHK and for the said party to form strategic partnership with RWTC.
Ranhill said the agreement was conditional upon key performance indicators (KPIs) to be met by the claimant. However, the KPIs were not met by the claimant.
Its share price fell to a low of 74 sen on the news, before closing at 75 sen, with 775,500 shares changing hands.