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Geo Energy's bid to buy company runs into lawsuits from vendors' shareholders
MAINBOARD-LISTED coal miner Geo Energy Resources's bid to buy a company in Indonesia has been embroiled in lawsuits involving claims of 500 billion rupiah (S$46.8 million).
The tussle relates to a September 2019 deal for wholly owned Geo Ventures Global to buy a company from Indonesian companies Titan Infra Energy and Jaya Utama Indonesia.
But the vendors and some of their related parties have been sued by their shareholders in Jakarta, said Geo Energy in an update on Friday.
The claimants argue that certain agreements related to the planned deal "have prejudiced their interests and are null and void".
Geo Energy is now taking legal advice on a possible counterclaim, and settlement talks are under way, the board added in its bourse filing.
The latest disclosure from the Geo Energy board came a day after a hearing for one of the lawsuits, which was attended by Geo Energy's legal counsel.
Geo Energy said that, while neither it nor its subsidiary has been summoned, it will continue to attend the hearings. The next hearing takes place on Oct 15. It added that the board believes the proceedings will not have a material impact on the group.
The company's shares shed 0.2 Singapore cent, or 1.92 per cent, to S$0.102, before the news.