PETALING JAYA: Genting Malaysia Bhd’s (GENM) share price fell as much as 10 sen this morning on news of FOX filing a counterclaim seeking US$46.4 million (RM191.7 million) from GENM.
The stock opened lower at RM3.19 this morning and traded at a low of RM3.16 compared with its last adjusted closing price of RM3.26. At 11.17am, the stock fell 8 sen or 2.45% to RM3.18 with 12.14 million shares traded, making it one of the top losers and top active stocks on the bourse.
Yesterday, GENM told Bursa Malaysia that Fox Entertainment Group LLC, Twentieth Century Fox Film Corp and FoxNext LLC (collectively known as FOX) and The Walt Disney Company had on Jan 22 filed answers to its lawsuit, but at the same time filed a counterclaim alleging breach of the implied covenant of good faith and fair dealing.
In addition, FOX is claiming a sum of RM191.7 million in respect of annual licence fees, guarantee amounts/royalties and travel reimbursements pursuant to the memorandum of agreement dated June 1, 2013, as amended, as well as consequential damages, reasonable costs and other relief under applicable law.
To recap, GENM is suing FOX and The Walt Disney Company for more than US$1 billion (RM4.13 billion) for terminating their contract to develop a Fox-branded theme park at Resorts World Genting in Malaysia.
