Tribunal orders Sime Engineering to pay damages to MMHE

The company said in a statement that Elsa marks the launch of the Sime Darby Property Affordable Collection which include high-rise and landed properties priced below RM500,000, located within the Klang Valley

KUALA LUMPUR: Sime Darby Engineering has been ordered to pay damages to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) for claims relating to a dispute over the sale of its oil and gas (O&G) business to MMHE in 2011.

Sime Darby said on Tuesday Sime Engineering had received the notification about the payment of the award from the  Asian International Arbitration Centre. The amount was not disclosed.

Recall that on Aug 25, 2011, both parties signed a sale and purchase agreement 
a sale and purchase agreement dated Aug 25, 2011 about the disposal of Sime Engineering’s oil and gas business to MMHE.

Both parties also signed a supplemental sale and purchase agreement dated 30 March 2012.

However, disputes and differences relating to both agreements had arisen between both parties.

This saw MMHE invoking the reference to arbitration in accordance with the rules for arbitration of the Kuala Lumpur Regional Centre for Arbitration before a panel of three arbitrators. 

In the latest development, Sime Darby said Sime Engineering “is in the process of reviewing the award”.

The award was not expected to have a material effect on the earnings and the net assets of the Sime Darby Group for the financial year ending June 30, 2018, it said.