KUALA LUMPUR (Nov 2): MSM Malaysia Holdings Bhd has agreed to discontinue the legal proceedings against Gas Malaysia Energy and Services Sdn Bhd (GMES) over a disputed sum of RM10.32 million relating to gas supply to its wholly-owned unit MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor).

The sugar refinery company told Bursa on Thursday that Notices of Discontinuance were filed to the Kuala Lumpur High Court on Nov 1 to signify the conclusion of the Writ Action with each party to bear its own costs and without liberty to file afresh.

“There is no potential liability, financial and operational impact to the company and the MSM group of companies,” it said.

In November last year, MSM Malaysia said it had filed a lawsuit against GMES.

MSM Malaysia said MSM Johor was forced to stop accepting gas supply from Gas Malaysia's subsidiary, Gas Malaysia Energy and Services Sdn Bhd (GMES), following the shutdown of MSM Johor's refinery operations due to incidents of leakages in the boilers in 2020 and 2021.

GMES had, in April 2022 demanded the RM10.32 million from MSM Johor via a take-or-pay (T-O-P) invoice for gas supply.

Shares in MSM Malaysia finished one sen or 0.8% higher at RM1.26, giving it a market capitalization of RM885.75 million.