SINGAPORE (May 31): Clearbridge Health said its indirectly-held subsidiary in Indonesia has been sued by a joint venture partner in Jakarta,
This partner, PT Tirta Medika Nusantara (TMN), claims that a certain notarial deed has been made unlawfully, and as such, seeking damages of IDR 1.06 trillion ($102 million).
TMN, according to a search of court filings in Indonesia, filed the suit on May 6, said Clearbridge Health via an SGX announcement on May 31.
Clearbridge Health’s indirectly-held joint venture is called PT Tirta Medika Jaya (TMJ), a renal care provider.
Clearbridge Health paid some $5.5 million in a mix of cash and shares for its stake in TMJ back in April 2018.
According to Clearbridge Health, TMN told TMJ’s board of directors and board of commissioners about the suit on May 22 and May 25 respectively.
Clearbridge Health owns its stake in TMJ via an entity called Clearbridge Medical Asia Pte Ltd (CBMA).
“As of the date of this announcement, neither TMJ nor CBMA has received any formal letter of demand from TMN relating to the claim or any written summons from the Court or other authorities,” said Clearbridge Health.
“As a result, TMJ and CBMA are not able to ascertain the basis of TMN's claim,” the company added.
According to Clearbridge Health, a hearing has been scheduled on Nov 11.
“CMBA and TMJ are of the opinion that the notarial deed is in accordance with Indonesian law and there is no merit to the claim that it is unlawful,” the company added.
“TMJ has engaged Indonesian legal counsel and the Company will continue to update its shareholders if there are any material developments on this matter. In the meantime, the operations at TMJ are unaffected by this event,” said Clearbridge Health.
Clearbridge Health and its separately-listed subsidiary Biolidics were in the news recently for making progress in the sale and distribution of Covid-19 test kits across various markets.
