PETALING JAYA: 7-Eleven Malaysia Holdings Sdn Bhd yesterday announced that all parties to the legal action involving the Dego Malaysia suit have reached an amicable settlement and recorded a consent judgment at the Kuala Lumpur High Court.
The settlement will envisage, amongst others, both Dego Malaysia Sdn Bhd and its founder Nabil Feisal Bamadhaj to pay a sum of RM2.8 million to 7-Eleven and Qinetics Solutions Sdn Bhd as full and final settlement of the claims made against them. The settlement sum will be satisfied with an initial payment of RM400,000 and the remaining by way of 24 monthly instalments of RM100,000 each.
The cost of investment amounting to RM7.51 million was fully impaired in the financial year ended Dec 31, 2020. The settlement will not have any material effect on the earnings, net assets and gearing of the 7-Eleven group for FYE Dec 31, 2021.
“The board of directors of the company is of the opinion that the settlement is in the best interests of the company as it enables the group to focus on growing its core businesses going forward,“ 7-Eleven said in a stock exchange filing.
In November 2020, 7-Eleven and Qinetics Solutions collectively filed a writ of summons and statement of claim against Nabil and Dego Malaysia for respective claims arising from a subscription agreement (SA) dated Dec 27, 2019 made between 7-Eleven, Nabil and Dego and a share sale agreement dated Sept 11, 2019 made between Qinetics and Nabil.
The suit arises from its claim for recession of the SA for various misrepresentations made by Nabil and Dego to induce 7-Eleven to invest in Dego, formerly known as Myinteractivelab Sdn Bhd (MSB).
To recap, in December 2019, 7-Eleven was acquiring a 46.45% stake in e-hailing motorcycle taxi services operator MSB for RM7.51 million.
MSB is in the provision of delivery services, web development, design and consultation services. It is also the operator, registered and beneficial owner of three mobile applications named Dego App, Dego Partners and Dego Orders.
The e-hailing company had previously been banned from operating by the government in 2017, but was granted approval at the beginning of this year.
