Advance Synergy’s Indonesian unit offered RM1.66m out-of-court settlement

KUALA LUMPUR (March 20): Holiday Villa hotels operator Advance Synergy Bhd (ASB) said its indirect Indonesian subsidiary, PT Diwangkara Holiday Villa Bali (DHVB), has entered into a settlement agreement with counterparties which it is suing.

In a filing with Bursa Malaysia, ASB said DHVB was offered a six billion rupiah (RM1.66 million) cash settlement by CV Telabah Nasional Trading Company and PT Diwangkara Jaya Makmur, whose shareholders are the heirs of the hotel’s owner.

They had been sued by DHVB in May 2019 for alleged breach of contract.

ASB said the settlement is expected to result in a gain of about RM520,000 to the group or an increase in earnings per share of 0.056 sen.

In the last five years, ASB has seen three years of losses and two years of gains. Notably, it made a huge gain for the financial year ended Dec 31, 2019 (FY19), mostly due to gains from the disposal of a property.

Sharesof ASB closed 0.5 sen or 6.7% lower at seven sen yesterday, giving the group a market capitalisation of RM65 million.

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