Hoe Leong Corporation Ltd. Issues Update on Material Litigation: Key Developments and Implications for Investors

Hoe Leong Corporation Ltd. (“the Company”) has released a significant update regarding ongoing material litigation that may have important implications for shareholders and potential investors. The case, which has been subject to multiple disclosures over the years, concerns the matter of Auspicious Journey Sdn Bhd v Ebony Ritz Sdn Bhd & 5 Others at the Kuala Lumpur High Court.

Key Points in the Litigation Update

• Stay of Execution Granted: On 11 February 2026, the Kuala Lumpur High Court granted the Company’s application for a stay of execution of the judgement sum. However, the stay is conditional on two key requirements:
  • The Company must pay half of the general damages, amounting to RM9,276,500, into its law firm’s (Rosli Dahlan Saravana Partnership) interest-bearing client’s account as a stakeholder. This must be done within 30 days (by 13 March 2026).
  • The Company must also pay RM750,000 in costs to the plaintiff’s solicitors.
• Next Steps: Hoe Leong Corporation intends to apply for a further stay of execution at the Court of Appeal in Kuala Lumpur. The Company’s appeal against the judgement sum has already been lodged, and a hearing date is pending.
• Ongoing Disclosure: The Company will provide additional updates if and when:
  • The stay conditions are fulfilled, or
  • The further stay application is heard before the Court of Appeal.

Implications for Shareholders and Potential Price Sensitivity

• Financial Impact: The requirement to pay RM9,276,500 into a stakeholder account and RM750,000 in legal costs is a substantial financial commitment for Hoe Leong Corporation. This could impact the Company’s cash flow and financial position, especially if the appeal is unsuccessful and the Company becomes liable for the full judgement sum.
• Share Price Sensitivity: The outcome of the appeal and the Company’s ability to secure a further stay of execution are potentially price sensitive events. Investors should be aware that any adverse developments could impact the Company’s share value.
• Warning to Investors: The Company explicitly cautions shareholders and potential investors to refrain from taking any action regarding their securities that may be prejudicial to their interests. Caution is advised when dealing in Hoe Leong Corporation’s shares, and investors should consult with professional advisors if uncertain.

Conclusion

This update represents an important development in a longstanding legal dispute involving Hoe Leong Corporation Ltd. The substantial sums involved and the pending appeal process make this a critical issue for the Company’s financial outlook and share price volatility in the coming months.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are strongly encouraged to consult their stockbrokers, bank managers, solicitors, or professional advisors before making any investment decisions in relation to Hoe Leong Corporation Ltd.

View Hoe Leong Historical chart here