PETALING JAYA: Berjaya Land Bhd and its subsidiaries, namely Berjaya Leisure (Cayman) Limited and Berjaya Jeju Resort Limited, together with Swan Street Partners LLC have entered into a settlement agreement with Jeju Free International City Development Center (JDC) to comprehensively and finally settle and resolve any and all potential disputes arising out of and/or in connection with the Jeju project and the JDC lawsuit.
In a statement to the stock exchange today, the group said under the settlement agreement, the estimated total settlement sum to be received by Berjaya Leisure from the joint venture agreement damages and land sale and purchase agreement damages, net of relevant taxes and expenses, is estimated to be KRW102 billion (RM362.19 million).
“The board of BLand is of the opinion that the settlement is in the best interest of BLand as it allows for an amicable settlement of a long drawn dispute and damages claims relating to the Jeju project and the JDC lawsuit in a beneficial and cost-effective manner,” it said.
JDC will pay KRW125 billion to Berjaya Leisure and Swan Street Partners as compensation for damages incurred as joint venture partners in Berjaya Jeju Resort, and another compensation sum to Berjaya Jeju Resort due to damages incurred with regard to the land sale and purchase agreement and the Jeju project.
The settlement will not have any effect on the group’s issued share capital and substantial shareholders’ holdings. It is also not expected to have any material effect on the earnings, net assets and gearing of the group for the financial year ended June 30, 2020.
The lawsuit was filed in November 2015, when Berjaya Jeju Resort instituted legal proceedings in the Republic of Korea against JDC for its breach of certain terms and conditions set out in the land sale and purchase agreement dated March 30, 2009.
This was in relation to the proposed mixed development of an international themed village known as the “Jeju Airest City” in Jeju Island, and to claim for losses and damages incurred as a result thereof.
