KUALA LUMPUR (Jan 10): Public Bank Bhd has withdrawn its lawsuit against Magma Group Bhd and Magma executive chairman Datuk Seri Ismail Farouk Abdullah, stemming from a dispute over the settlement of outstanding sums under various term loan and overdraft facilities.

The withdrawal came after Magma’s unit made “a payment to Public Bank and had regularised payment of the facilities with Public Bank”, according to a company stock exchange filing in November.

The High Court, in a case management on Tuesday, granted permission for Public Bank to withdraw the suit, with liberty to file afresh, Magma showed in a stock exchange filing.

Magma managing director Datuk Seri Thomas Liang Chee Fong said the court's decision marks a “watershed” moment for the group, enabling it to start afresh and leaving behind the legal challenges.

“Our focus now shifts to harnessing new opportunities and reinforcing our commitment to sustainable business growth. We are optimistic about the future, and are poised to explore new avenues that align with our strategic objectives,” he said.

Public Bank in June last year filed a civil suit against Magma’s wholly owned unit Astaka Mekar Sdn Bhd, as well as Data Sepadu Sdn Bhd, Impiana Sdn Bhd and Ismail Farouk.

Ismail Farouk, a major shareholder of Data Sepadu and Impiana, owns an 11.6% stake in Magma, and is the second largest shareholder after the collective stake of 22.6% held by HYM Group chairman Datuk Seri Lee Hock Seng and his spouse Datin Seri Joanne Yew Hong Im.

Shares in Magma were trading one sen or 3.6% lower at 26.5 sen at Wednesday's noon break, valuing the company at RM250.49 million. Its share price has climbed nearly three times over the past three months.