KUALA LUMPUR, Oct 7 — CelcomDigi Bhd’s shares slipped in early trade today following wholly-owned subsidiary, CelcomDigi Mobile Sdn Bhd, receiving an arbitration notice from IMMA Technology Sdn Bhd over an alleged breach of a service agreement signed in March 2022.
At 9.56am, the company’s shares dropped one sen to RM3.68, with 87,200 shares traded.
In a Bursa Malaysia filing yesterday, CelcomDigi said it plans to contest claims.
IMMA is seeking RM72.59 million in alleged loss of profits, or RM28.3 million in wasted expenditure.
According to the filing, the payment terms in the agreement are based on a revenue-sharing arrangement effective on the launch of the service. 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 proposal was issued in November 2023 to cover the merged subscriber base, but IMMA did not participate in the new tender process despite being invited to do so,” it said. — Bernama
