KUALA LUMPUR (Oct 26): Property developer Y&G Corp Bhd is being sued by Chemical Company of Malaysia Bhd (CCM) over outstanding lease rental for a piece of land.

In a filing with Bursa Malaysia today, Y&G said it had been served with a sealed Writ of Summons and Statement of Claim, both dated Oct 20, 2015, by solicitors Messrs. Raja, Darryl & Loh, acting for CCM.

Y&G (fundamental: 3.0; valuation: 2.6) further noted that the chemicals and pharmaceuticals products maker is claiming for a declaration that the land lease is appropriately terminated, an order to re-enter and repossess the leased land, an order that Y&G shall pay CCM a sum of RM2.23 million being six years’ lease rental in arrears, 5% interest per annum on the arrears lease rental (calculated from Jul 8, 2015 until the date of full settlement) and other incidental costs.

The filing did not disclose further details or the where about of the land.

Nevertheless, Y&G said it is not aware of the past land lease arrangement entered into on Aug 29, 1987, nor the arrears lease rental and therefore, would arrange to seek further clarification from CCM in due course.

“In view thereof, the directors are of the opinion that the plaintiff’s claims do not have any material financial/operational impact on the group,” Y&G said.

Y&G added it will be seeking legal advice to act against the writ and at the same time, will also be seeking further clarification from the plaintiff, with the view of settling the matter amicably.

Y&G closed unchanged at RM1.25 today, giving it a market capitalisation of RM249.2 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)