In comments provided by its counsel, Ashok Kandiah and Dinesh Ratnarajah, TISB said an article published by FMT titled Dubious Deals, white knight fiasco at Sarawak Cable contained several inaccuracies and omissions relating to the disposal of shares in the company.
According to the lawyers, the value of the sale and transfer of TISB shares was revised and reduced after new shareholders discovered previously undisclosed debts amounting to about RM20 million, which directly affected the company’s true valuation.
The lawyers said the suit commenced by Sarawak Cable Berhad (SCB) through the interim judicial manager to challenge the sale and transfer of shares in TISB was withdrawn and discontinued on Sept 4, adding that there are currently no pending legal proceedings disputing the transaction.
They clarified that the application for the appointment of a judicial manager was withdrawn by Krishna Kumar Sivasubramaniam and subsequently struck out by the court after SCB failed to submit its regularisation plan, leading to SCB’s delisting.
“As a result, the initial appointment of the interim judicial manager has been terminated.
“In any event, the sale and transfer of shares in TISB were at all times conducted in a transparent manner and carried out in the best interests of both SCB and TISB,” they said.
The comments come amid SCB’s disposal of TISB, a wholly owned subsidiary involved in a major Tenaga Nasional Bhd project.
TISB, incorporated in 1996 and operational since 2002, has completed about 50 transmission line and infrastructure projects worth an estimated RM2 billion, according to its website.
The sale drew scrutiny after SCB entered into a share subscription agreement in September 2023 to dispose of a 49% stake in TISB for RM1 million, with a conditional option for the remaining 51% to be acquired for RM400,000, subject to additional cash advances.
Subsequent variations to the deal and the eventual transfer of the remaining shares to third parties had prompted allegations by a minority shareholder that the subsidiary was sold at an undervalued price, and that directors may have breached their fiduciary duties.