KUALA LUMPUR (Sept 5): Leong Hup International Bhd said its subsidiary has been given a one-month extension to submit its representation in response to the Malaysia Competition Commission's (MyCC) poultry feed price-fixing proposed decision.

In a bourse filing on Monday (Sept 5), the poultry player said MyCC has granted Leong Hup Feedmill Malaysia Sdn Bhd (LFM) until Oct 21 ― as compared to the initial deadline of Sept 20 ― to submit its written submissions.

This came after LFM requested for an extension of time from the competition watchdog for the submission of the written representations.

MyCC issued its proposed decision against LFM and four other feed millers on Aug 5, saying it had provisionally found them to have infringed the Competition Act 2010 by entering into anti-competitive agreements and/or concerted practices in increasing the price quantum of poultry feed that contained soybean and maize as its main ingredient, between early 2020 and mid-2022.

The other four feed millers include Malayan Flour Mills Bhd’s partially-owned Dindings Poultry Development Centre Sdn Bhd and PPB Group Bhd’s 80%-owned FFM Bhd.

The two remaining companies involved are Gold Coin Feedmills (M) Sdn Bhd, under Gold Coin Group; and PK Agro-Industrial Products (M) Sdn Bhd, under CP Malaysia.

In the case of LFM, if it is found to have infringed the Competition Act, MyCC has proposed to impose a financial penalty of RM157.47 million, as well as stop it from engaging in the alleged anti-competitive horizontal agreement.

LFM will also be subject to submitting monthly price-related matters to MyCC ― including price adjustments to customers, recent poultry feed prices, and a monthly cost for poultry feed ― and enrol its directors and senior management executives in a competition law compliance programme and training.

Lastly, if LFM is found to have infringed the Competition Act, it is to develop a standard operating procedure in relation to the disciplinary procedure taken against any individuals employed who are found participating in any anti-competitive agreement.

At this juncture, MyCC’s proposed decision’s financial penalty and directions are not final.

Shares in Leong Hup ended half a sen or 1.03% higher at 49 sen on Monday, giving the group a market capitalisation of RM1.77 billion.