KUALA LUMPUR (Oct 6): Mynews Holdings Bhd said its subsidiary has been served with a winding-up petition over a rental dispute involving a retail lot at the Pacific Express Hotel.

The group said wholly owned Mynews Retail Sdn Bhd entered into a three-year tenancy agreement with landlord Kumpulan Hamzah Kwong Hing Realty Sdn Bhd in 2014, with an option to renew for a further three consecutive terms of three years each.

The subsidiary renewed the tenancy once in 2017 but expressed its intention of not exercising its option for further renewal in 2020, said the convenience stores operator in a filing with Bursa Malaysia on Thursday (Oct 6).

However, the intention to discontinue the tenancy was hampered by the landlord, who alleged that Mynews Retail purportedly renewed summarily for all three terms of three years in 2017, said Mynews.

The group said Mynews Retail had suffered losses "due to the redundancy of the area and closure of businesses surrounding the premises against the outbreak of Covid-19 pandemic since early 2020".

Kumpulan Hamzah Kwong Hing on Aug 23 demanded RM112,769.91 from Mynews Retail, together with 16% annual interest on the sum of RM103,074.81.

"The accuracy of the demanded sum was disputed by the tenant owing to the reason that the demanded sum was derived as a result of the alleged misrepresentation which the landlord denied," said Mynews.

While it is deliberating over the next course of action, Mynews Retail has made payment of the amount claimed under the winding-up petition under protest and without admission of liability, the group added.

"Mynews Retail will also reserve its rights to claim for any losses and damages suffered against the landlord," said Mynews.

Shares of Mynews closed three sen or 6.67% higher at 48 sen on Thursday, giving the group a market capitalisation of RM327.43 million.  The stock has fallen 42.5% year-to-date.