CelcomDigi to contest breach of contract claim filed by IMMA


KUALA LUMPUR: CelcomDigi Bhd’s wholly-owned subsidiary, CelcomDigi Mobile Sdn Bhd, plans to defend claims filed by IMMA Technology Sdn Bhd over an alleged breach of a services agreement signed in March 2022.

In a filing with Bursa Malaysia today, CelcomDigi said it has received a notice of arbitration from IMMA, which is seeking RM72.59 million in alleged loss of profits, or RM28.3 million in wasted expenditure.

The services agreement pertains to credit advance services with CelcomDigi.

According to the filing, the payment terms in the agreement are based on a revenue-sharing arrangement that will take effect upon the launch of the service, and no upfront costs are required to be paid to IMMA.

It also said the launch of the service was postponed in anticipation of the Celcom-Digi merger, following which a new request for proposal was issued in November 2023 to cover the merged subscriber base.

The filing said MMA did not participate in the new tender process despite being invited to do so.

CelcomDigi stated that the arbitration is not expected to have any material impact on its operations or net assets per share for the financial year ending Dec 31, 2025. - Bernama

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