Scicom (MSC) Bhd has failed to obtain a stay order after the Kuala Lumpur High Court today dismissed the IT services provider’s application in a suit brought by Education Malaysia Global Services (EMGS).
“The company is appealing the decision to the Court of Appeal and has been advised by its legal counsel that there are strong grounds to reverse the decision under appeal,” Scicom said in a bourse filing today.
This was a procedural ruling, according to Scicom, and did not deal with substantive issues. “The company is accordingly of the view that the decision is not expected to have a material financial or operational impact on the company,” Scicom added.
EMGS, a wholly-owned company under the Ministry of Education, served an originating summons to Scicom seeking to enforce a right under an agreement signed between the two on Nov 1, 2012.
The directors of EMGS sued Scicom alleging that the profit-sharing deal between both companies was lopsided after the latter was appointed to build the foreign student visa processing platform.
EMGS said the company was looking to nullify the deal with Scicom. But Scicom had defended its handling of the visa processing programme had “been functioning seamlessly for over seven years with all the requisite clearances from the authorities.”
Scicom’s share price closed unchanged at RM1.08, giving it a market capitalisation of RM383.89 mil. – July 27, 2020
