KUALA LUMPUR (Feb 9): The shareholder dispute on the divestment of Celcom Axiata Bhd’s 35% stake in Tune Talk Sdn Bhd has been brought to the Asian International Arbitration Centre (AIAC).
A group of Tune Talk shareholders, who collectively hold 30.02% stake, is trying to block Celcom Axiata from selling its 35% stake in the mobile virtual network operator. The sale of 35% in Tune Talk forms part of Axiata Group Bhd’s merger plan with Digi.Com Bhd. However, the remaining 65% stake in Tune Talk held by the other shareholders is left out in the merger talks.
The shareholder dispute has turned into a court tussle which is now pending arbitration in AIAC.
Three shareholders, who are attempting to block the sale of the 35% stake in Tune Talk, had earlier filed an injunction to block the sale.
Lawyer K Shanmuga, who is one of the lawyers representing the plaintiffs — Padda Gurtaj Singh, East Pacific Capital Pte Ltd and Tune Strategic Investments Ltd — told The Edge that the parties involved will be discussing if the injunction could be amicably resolved.
The plaintiffs will be asking Axiata/Celcom to propose suitable undertakings, in lieu of an injunction, to assuage the group of disputing shareholders’ concern regarding the proposed sale and its impact on Tune Talk, Shanmuga said.
“These injunctions are to last until the conclusion of the arbitration, which is now pending a hearing in the AIAC,” the lawyer added.
Earlier, Axiata and Celcom Axiata had filed an application to strike out the suit. The case was heard before judicial commissioner Ong Chee Kwan, and will continue on March 11.
Celcom Axiata currently provides network services to Tune Talk. The latter incurred costs of traffic expenses and materials of RM352 million in the financial year ended Dec 31, 2020.
The three plaintiffs, who collectively own 30.02% in Tune Talk, are also seeking an injunction against Celcom Axiata or its agents from amending, varying or otherwise changing the terms of the network services which Celcom Axiata provides to Tune Talk.