Yeo Hiap Seng unit served three writs of summons by former distributors

BEVERAGE player Yeo Hiap Seng's wholly-owned indirect subsidiary in Malaysia has been served with three writs of summons from former distributors for about RM13.7 million (S$4.5 million) in total claims.

The writs were filed in the High Court of Malaya at Shah Alam by Sengjaya Gains, Sengjaya Marketing and Sengjaya Gains (KL). Each of their non-exclusive agreements had been terminated, Yeo Hiap Seng said in a bourse filing on Monday night.

The plaintiffs are seeking declaratory reliefs on the termination of their respective agreements, refunds of the security deposits paid and for general, special, exemplary and aggravated damages.

The subsidiary - Yeo Hiap Seng Trading Sdn Bhd (YHS Trading) - disputes the actions and has appointed solicitors to enter appearance to vigorously defend the actions on the advice that the basis for the actions is wholly groundless and without any merit whatsoever.

YHS Trading has similarly taken advice for the recovery of the sums owed by the former distributors, arising from the latter's alleged breaches of their respective agreements.

Yeo Hiap Seng said the actions are not expected to have any material impact on the group's sales, although the recovery of sums owed by the former distributors may be impaired for the financial year ending Dec 31, 2020.

It said it is assessing the situation and will make further announcements as appropriate on any material developments.

Shares of mainboard-listed Yeo Hiap Seng closed flat at S$0.78 on Monday.