Last week August 23rd, Forbes published an article on the upcoming listing of 99 Speedmart. The rival of Vincent Tan's 7-Eleven will make founder Lim Thiam Wah the next billionaire. Thiam Wah was a former shareholder of Alliance Bank and has since sold his 18% stake.
In the meanwhile, controversial KKMart aborted its listing plan in March but is back on course. The charges against KKMart founder and executive chairman, Datuk Seri Dr Chai Kee Kan and his Director wife Datin Seri Loh Siew Mui thrown out by the court.
It looked to be a fix-up job to an experienced eye of Malaysia's toxic politics of race and religion.
Pemuda UMNO Chief, Datuk Dr Akmal Salleh made an issue out of it and the majority of Muslim population got riled up over 5 stockins with the name of Allah found at two KKmart outlets and viraled by preacher Firdaus Wong. .
Yes, its not a mistake. Akmal was bestowed Datokship by the TYT of Melaka. The KKMart affair raised his political profile within UMNO and among Malay electorates. But thats another story.
The point is another competitor for Vincent Tan's Berjaya Group beefing up for competition. However, this posting is not about a possible trade war of neighbourhood sundry shops transformed as convenience retail outlets.
Its about Vincent Tan.
Last week, there was a legal update on Vincent Tan lawsuit against the government for the cancelled government vehicle fleet concession for September 3rd court date.
Vincent Tan seeks to drop judicial review, but Spanco rejects terms
FMT Reporters - 22 Aug 2024, 06:48 PM
The application over the termination of a letter of intent for a multi-million ringgit vehicle fleet concession will be heard before a judge on Sept 3.
KUALA LUMPUR: Berjaya Group founder Vincent Tan has filed in the High Court a notice of discontinuance to withdraw a judicial review application against the government’s decision to terminate his company’s letter of intent for a multi-million ringgit vehicle fleet concession.
The tycoon, through Cekap Urus Sdn Bhd, had filed the application early this month but one of the respondents, Spanco Sdn Bhd, disagreed with the terms of the withdrawal.
In its application filed a year ago, Cekap Urus had also named the government and finance ministry as the other respondents.
Federal counsel Sallehuddin Ali confirmed the matter, after appearing for Putrajaya in a case management before senior assistant registrar Lee Ka Ful today.
Since there are some disputes, the matter will come up before Justice Ahmad Kamal Shahid on Sept 3, he told FMT.
Lawyer Chuar Kia Lin represented Cekap Urus while Edmund Choi acted for Spanco.
Cekap Urus, a joint venture involving Berjaya and Naza Group, had obtained leave to file an application for a judicial review and parties were said to be filing affidavits for the merit of the case to be heard.
At a press conference last year, Tan claimed his consortium had received a letter of intent from the government to supply fleet vehicles, but three months after Muhyiddin Yassin became prime minister, he was notified that the deal had been terminated.
He also alleged that the tender had reverted to Spanco, despite the Berjaya-Naza bid being RM700 million cheaper than Spanco’s offer.
In 2018, the government had called on companies to bid for a contract to supply, maintain and manage its fleet of official vehicles for the next 15 years.
Berjaya and Naza formed a consortium to bid for the contract that reportedly involved some 12,500 vehicles worth an estimated RM300 million annually, from the fifth year of the contract onward.
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Vincent Tan-led consortium was awarded the concession during Mahathir 2.0 but had it cancelled by Muhyiddin. Subsequently, he seek judicial review of the Government decision.
Vincent sued the Government and Spanco over a letter of intent Berjaya Group's JV Company received from Government in 2018.
In a 51:49 venture with Naza Motor, they were to replace Spanco in managing about 12,500 government vehicles in which the contract for the consortium is worth an estimated RM300 million annually starting after the fifth year.
Vincent claimed he was treated unfairly and Spanco was re-awarded despite costing RM700 million more. An excerpt from July 2023 NST report reads:
"We have filed a lawsuit against the ministry on this, and we are waiting to go to court this year. You will hear more of this down the road," he said at a press conference on the sale of Berjaya group's waste management business to Naza Group for RM700 million here today.
In February 2018, the government called for proposals for the contract to supply, maintain and manage its fleet of official vehicles for the next 15 years.
Proposals were reportedly received from at least seven companies.
Aside from the Naza-Berjaya consortioum, other bidders were Sime Darby Bhd, DRB-HICOM Bhd, Samling Group, Comos, Go Auto and Spanco, which had managed the concession since 1994.
According to Tan, the Naza-Berjaya consortium had won the bidding with the lowest offer.
"We won the contract as the lowest bidder and got the LoI. But then the government changed and Tan Sri Muhyiddin Yassin became the prime minister. Three months after that, we got a notice that our LoI has been terminated.
"(The government) terminated our LoI and gave the tender to Spanco Sdn Bhd. Our tender was RM700 million cheaper than Spanco," he remarked.
Tan questioned why the government had agreed to pay RM700 million more to Spanco.
"Maybe the new government thinks that Berjaya and Naza are not good enough in the car maintenance business or the car business," he suggested.
He said the consortium had changed its shareholder agreement, raising the Bumiputera stake in it to 60 per cent.
"Berjaya's stake is now down to 40 per cent. Hopefully we will get favourable results from a court decision," he added.
Sources claimed Vincent's allegation against Spanco is libelous and does not represent the true picture of his contract.
Without revealing the details yet, the terms of the concession awarded to Vincent from Mahathir is not the same with the original Spanco contract. Vincent's does not include vehicle maintainance in the contract.
An intelligent guess would be that Spanco did not take kindly to the allegation by Vincent. The reason their lawyer Edmond Bon disagree with the term of withdrawal. Is a counter lawsuit in the making?
Robert Tan who was questioned by MACC for Spanco have every reason to be angry for the ordeal the he had to go through.
If a Tan vs Tan or Bangsa Johor vs Bangsa Johor or more precisely Batu Pahat-an vs Batu Pahat-an war erupt, it will be a war the elephants in which that the grass willusually suffer.
Vincent's Berjaya Food has been hurting from the global boycott against Starbuck. Late year, there was a sell call on the company shares by analysts. Looks like its one of the elephant is already injured before the battle got started.
One deep throat claimed Vincent is already on code red emergency and has only a few hundred millions Ringgit surplus out of the Forbes reported networth of USD695 million. That explains why he need to prop up confidence in his planned sales of Starbuck.
Agong maybe his partner in Berjaya Food and Red Tone, but words on the street is he has fall out of favour for the inappropriate union of another of his business partner.
Red Tone is not in the running for the long running Malaysia corporate soap opera, the Immigration contract, but heard to acquire stake in the favourite tenderer to win NIISE, namely Theta Edge to stay relevant.
There was earlier talk of suggestion from Government that the three leading bidders for the contract to form a consortium but it did not fall through. Perhaps, Vincent bought a stake in Theta Edge to remain in the news and have a narrative to tell the common man in the street investors.
He has rejected any takeover offer for U Mobile and now selling himself as humanitarian and concerned citizen championing the cause of stateless children in Sabah. Since when Mahathir is ever concerned for Sabah, other the Project IC to take control of Sabah and encouraged more stateless children in the state?
In the meanwhile, brother Danny Tan's Tropicana sold off his third property and couldn't pay for a land acquisition in which deposit was paid 2 years ago.
Mahathir insisted the Bank and receiver transfer the asset to Syed Mokhtar and Danny.
Indications of impending fall?
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