MMC's Algerian unit faces legal action for alleged forex rule breach

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KUALA LUMPUR (Nov 12): MMC Corp Bhd's Algerian unit is facing legal action for alleged breach of foreign exchange (forex) regulations involving US$26.99 million (RM90 million).

 In a statement to Bursa Malaysia today, MMC said the legal action for the forex case involved its 18.2%-owned unit Almiyah Attilemcania SPA (AAS), which undertakes sea water desalination operations in Algeria.

"AAS has been advised by its solicitors that it has a good chance of success in respect of the legal proceedings.

"MMC would be in a better position to ascertain the full financial impact, if any, of the legal proceedings upon receipt of a more definitive opinion from AAS’ solicitors as the impact could not be reliably ascertained at this juncture," MMC said.

MMC said the Court of Ghazouet in the district of Tlemcen had decided to hear the case today. Solicitors Maitre Ahcene Bouskia is representing MMC.

MMC said its effective 18.2% stake in AAS is held via Malakoff Corp Bhd.

Malakoff Corp is a 51%-owned subsidiary of MMC, which is controlled by Malaysian tycoon
Tan Sri Syed Mokhtar Al-Bukhary.

At 12.30pm, MMC shares fell one sen or 0.4% to RM2.44 for a market capitalisation of RM7.43 billion.

The stock had declined 15% this year, underperforming the FBM KLCI's 2.48% fall.