Overview

GuocoLand (Malaysia) Berhad (“GuocoLand”) has announced a significant development in its ongoing litigation involving its subsidiary, GLM Emerald Hills (Cheras) Sdn Bhd (“GLM EHills”), and Barisan Performa Sdn Bhd (“BPSB”). This update is a follow-up to their earlier announcement from 18 June 2025 and quarterly results regarding material litigation.

Key Points of the Announcement

• Legal Proceedings: GLM EHills had previously been subject to an arbitration award dated 16 June 2025, which was granted in favour of BPSB. In response, GLM EHills filed an application in the Kuala Lumpur High Court to set aside the arbitration award and requested a stay of enforcement proceedings pending the outcome.
• High Court Hearing: Both the application to set aside the arbitration award by GLM EHills and the application to enforce the award by BPSB were heard together on 23 January 2026.
• Judgment: On 29 January 2026, the Kuala Lumpur High Court allowed GLM EHills’ application to set aside the arbitration award and dismissed BPSB’s application to enforce it. This means the arbitration award granted to BPSB is no longer enforceable against GLM EHills.
• Immediate Impact: The outcome removes a potentially substantial financial liability and legal risk from GuocoLand’s subsidiary.

Implications for Shareholders and Investors

• Material Litigation Risk Mitigated: The High Court’s decision to set aside the arbitration award is likely to have a positive impact on GuocoLand’s future financial results as it eliminates an adverse award that could have required substantial payment or other remedies.
• Potential Share Price Impact: With the dismissal of enforcement against GLM EHills, investor sentiment may improve due to reduced litigation risk and improved outlook for the subsidiary’s operations and cash flow.
• Market Sensitivity: This is a material development for GuocoLand (Malaysia) Berhad as it involves a significant legal matter that could influence share price movement. Investors should closely monitor further updates in case of appeal or new proceedings by BPSB.

Further Information

The announcement was made on 29 January 2026, under the company’s general disclosure, providing transparency to shareholders and the investing public. The company has reaffirmed its commitment to keeping investors updated on any further material developments in this legal matter.

Conclusion

The Kuala Lumpur High Court’s decision is a clear legal win for GuocoLand (Malaysia) Berhad and its subsidiary GLM EHills. This outcome removes a major uncertainty and could result in a reassessment of the company’s risks and valuation by the market. Investors are advised to remain attentive to any follow-up actions or appeals from BPSB.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult their financial advisors before making investment decisions. The information is based on public disclosures and may be subject to further legal proceedings or changes. Past performance and legal outcomes do not guarantee future results.

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