EcoWorld Unit Exiting MySJ For Over RM24 Million

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KUALA LUMPUR: Eco World Development Group Berhad’s wholly-owned subsidiary, Hasrat Budi Sdn Bhd (HBSB), wants to be bought out of MySJ Sdn Bhd – the private company operating the MySejahtera health app – for more than RM24 million.

The property developer said in a filing with Bursa Malaysia that last July 28, a consent judgment was entered for Entomo Malaysia Sdn Bhd (the company that originally developed MySejahtera for the Malaysian government) and Raveenderen Ramamoothie (a director of MySJ and founder CEO of Entomo) to purchase all of HBSB’s shares in MySJ and to pay HBSB RM24 million, plus premium at the rate of 10 per cent per annum calculated from August 27, 2021, until the date of full payment.

Under the consent judgment, Entomo and Raveenderen (also known as Ravee) are to pay HBSB the RM24 million plus interest to buy back HBSB’s 10 per cent stake in MySJ within three months from last July 28.

“This consent judgment will not affect the ongoing legal action filed by HBSB against Revolusi Asia Sdn Bhd, Entomo and Raveenderen for the breach of certain representations and warranties under the share sale agreement as announced on 18 April 2022,” EcoWorld said in its July 28 announcement.

According to the draft consent judgment filed by HBSB last July 20 at the High Court here, the directors appointed by HBSB will also resign from MySJ’s board.

The current sole director appointed by HBSB onto MySJ’s board is Liew Kee Sin, who is chairman of EcoWorld and was once listed among Malaysia’s 50 richest by Forbes in 2013. EcoWorld executive director Heah Kok Boon is Liew’s alternate director on MySJ’s board.

The draft consent judgment also stated that upon payment of the option price to HBSB and the resignation of the director appointed by HBSB from MySJ’s board, HBSB would have no further claims under MySJ’s share sale agreement and shareholders’ agreement, both dated August 27, 2021, except in respect to its lawsuit.

Last February 24, HBSB filed suit against Entomo Malaysia (formerly KPISoft Malaysia Sdn Bhd); MySJ shareholder Revolusi Asia Sdn Bhd; Raveenderen; MySJ directors Anuar Rozhan and Shahril Shamsuddin; and MySJ to insist on its strict contractual rights from the shareholders’ agreement – due to a conflict over directorship of MySJ.

In a court submission filed last July 16, HBSB maintained that all purported board meetings held by MySJ were invalid, including the first board meeting held last March 2 without Liew’s consent and attendance.

HBSB said the draft minutes of the March 2 board meeting showed that the defendants (“having full control of the board”) purported to appoint two additional directors – Raveenderen and Raja Mufik Affandi Raja Khalid – to MySJ’s board. Raja Mufik is chairman and co-founder of investment holding company Touch Group Holdings.

Based on the draft meeting minutes, HBSB also accused the defendants of attempting to disregard MySJ’s coordinating committee – which is separate from the board – and to “further dilute the powers” of the coordinating committee “against the terms and spirit of the shareholders’ agreement”.

Subsequently, on March 29, HBSB exercised its put option under the shareholders’ agreement to recover its investment and funding costs that required Entomo Malaysia and Raveenderen to purchase HBSB’s existing 10 per cent stake in MySJ.

According to Companies Commission of Malaysia (SSM) records obtained by HBSB last April 24, Revolusi Asia – with Raveenderen as majority shareholder – is the majority shareholder in MySJ. Another MySJ shareholder is P2 Asset Management Sdn Bhd, which is separately suing Entomo Malaysia, Revolusi Asia, and MySJ for alleged breach of a share sale agreement.

It is unclear if the government has made any payment yet to MySJ for the management and operations of MySejahtera that was first launched more than two years ago in March 2020 under a one-year corporate social responsibility (CSR) agreement, after which the government was meant to pay for MySejahtera services from April 1, 2021.

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