Friday, July 16, 2010

CBS' proposed transfer hits snag

KUALA LUMPUR: CBS TECHNOLOGY [] BHD []'s proposed transfer to the Main Market of Bursa Malaysia Securities has hit a snag with a legal suit pending.

In a statement on Thursday, July 15, CBS said the Securities Commission was unable to process its application for the proposed transfer until a litigation case by Bank Simpanan Nasional (BSN) against its subsidiary Cyber Business Solutions Sdn Bhd (CBSSB) had been resolved.

It said the litigation pertained to a project contract where CBSSB was to develop, install and integrate a new loan management system for BSN. BSN filed a suit in October 2009 against CBSSB for alleged breach of contract. CBSSB denied BSN's claim and has filed a defence and further counter-claimed against BSN.

"The board of directors will seek a meeting with the SC to clarify the SC's decision on the company's application for the proposed transfer and will decide on the next course of action," CBS said.

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