Shares of Sime Darby Property Bhd slipped as investors weighed the impact of a High Court decision that set aside a RM78.6 million compensation award linked to land acquired for the West Coast Expressway project.
At 10.51am, Sime Darby Property was down 1 sen or 0.73% at RM1.36, with 1.47 million shares traded. The stock opened at RM1.36 and moved between RM1.36 and RM1.38 during the session.
The property developer said on Monday that the Shah Alam High Court had ruled in favour of Lembaga Lebuhraya Malaysia (LLM), setting aside the severance and injurious affection compensation awarded to its wholly owned subsidiary Sime Darby Property (Klang) Sdn Bhd.
The dispute involved seven parcels of land measuring about 504,101 square metres acquired for the construction of the West Coast Expressway. The Klang District Land Administrator had previously awarded total compensation of RM169.3 million in 2015, comprising RM90.7 million for land value and RM78.6 million for losses related to the remaining land following the acquisition.
Sime Darby Property said it is assessing the financial implications of the ruling, including any potential payments after the court determines consequential matters, which are scheduled to be heard on July 20.
The company added that the legal matter is not expected to have any material operational impact at this stage, while it continues to evaluate the decision and consider available legal options.
