KUALA LUMPUR (Sept 28): Notion VTec Bhd has accepted AXA Affin General Insurance Bhd's RM159.37 million claim settlement offer to Notion VTec's wholly-owned subsidiary Notion Venture Sdn Bhd. This follows a fire incident at Notion VTec's main plant in Klang, Selangor.

Hard-disk drive manufacturer told Bursa Malaysia today that its unit Notion Venture has as of date received RM80 million from the insurer, as partial settlement for the material fire loss. The balance net settlement of RM79.37 million will be paid at a subsequent date, said Notion VTec, which also manufactures camera and automotive components.

"Reference is made to the company’s announcements on 20 October 2017, 23 October 2017, 5 January 2018, 30 January 2018, 4 May 2018 and 25 May 2018, pertaining to the fire incident, (which) occurred at its main manufacturing plant in Klang, Selangor.

"The settlement could be deployed for recovery of the production facilities affected by the fire incident and NVB (Notion VTec) will still retain its rights to any recovery from insurance proceeds for business interruption arising from the fire incident. The board will make further announcement whenever there is new development, as well as any significant financial impact on the material damage claim and business interruption claim," Notion VTec said.

At 12:30pm today, Notion VTec shares rose three sen or 4.38% to settle at 71.5 sen. The stock saw some seven million shares traded.