Lian Beng files $9.4m suit against ex-partner Manhattan
CONTRACTOR Lian Beng Group has sued its former partner Manhattan Resources for alleged breach of a deal to buy the former’s half stake in a joint venture.
Lian Beng said in a statement yesterday that it has filed a claim with the High Court against Manhattan for allegedly defaulting on a sales and purchase agreement signed between the two companies in 2007. It is seeking specific performance and/or damages. Both are Singapore Exchange mainboard-listed companies.
Lian Beng announced in July last year that is has entered into an agreement with Manhattan for the latter to acquire Lian Beng’s 50 per cent stake or its two million shares in their joint venture Lian Beng Energy.
This joint venture was formed in 2004 to take on an overburden removal contract for a coal mine in Kalimantan, Indonesia. Upon completion of the sale, Lian Beng Energy was set to become a wholly owned subsidiary of Manhattan.
Under the terms of agreement, Manhattan was given nine months to call for a general meeting to get shareholder approval for the transaction but Lian Beng claims it has not done so.
Manhattan - formerly Links Island Holdings - confirmed the suit in a filing to the exchange yesterday. It said Lian Beng is seeking specific performance or alternatively damages of up to $9.4 million for the alleged breach. Manhattan said it is ’seeking legal advice’ on the lawsuit.
Separately, ASL Marine Holdings yesterday announced that its associated company - ASL Energy (ASLE) - has disposed off a floating transfer station for US$33.2 million. ASLE is jointly controlled by ASL Marine and Manhattan.
This 65,000 deadweight tonne floating coal terminal pontoon has been chartered to PT Dermaga Perkasapratama for 10 years.
In June this year, Manhattan had also agreed to buy the other 50 per cent of shares in ASLE that it does not already own from ASL Marine for $22.37 million.
The deal additionally required Manhattan to take over an interest-free loan of $12.5 million that ASL Marine had previously extended to ASLE, taking the total completion amount to $34.87 million.
Manhattan shares were up 3.8 per cent to close at $0.68 yesterday.
Source : Business Times - 30 Aug 2008
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