May 16 2010
Sembcorp Marine sues to stop sale of PPL Shipyard stake
Sembcorp Marine Ltd. has gone to court to block the sale of a 15 percent minority stake in PPL Shipyard to China's Yangzijiang Shipbuilding.
Sembcorp Marine said on Saturday that it had commenced proceedings in the High Court of Singapore against PPL Holdings Pte Ltd ("PPLH") and its wholly owned subsidiary E-Interface Holdings Limited ("E-Interface").
It has asked the High Court to rule that the Joint Venture Agreement between the company and PPLH dated April 9, 2001 is no longer in force, to direct PPL Holdings and E-Interface to transfer the remaining 15 per cent of the shares in PPL Shipyard Pte Ltd. to the Company against payment of the sum of S$59,433,522 and to order them to pay damages for disclosing or causing to disclose confidential information of PPL Shipyard Pte Ltd to Yangzijiang Shipbuilding (Holdings) Ltd in breach of the JVA.
The Board of Directors of PPL Holding's parent, Baker Technology Limited, said in a stock exchange announcement Sunday that it had sought and received legal advice on the matter and that the legal counsels are of the view that Sembcorp Marine has no basis for its claims. It said it will "be taking all appropriate steps to vigorously defend its position."