Duty Free International (SGX:5SO) will file an objection to the compensation award for two lands owned by its subsidiaries, Cergasjaya and Cergasjaya Properties, which are being compulsorily acquired by Malaysia's Kementerian Dalam Negeri for a new road project connecting Kedah to Thailand, according to a Tuesday filing on the Singapore Exchange.
A compensation of 69.9 million ringgit was awarded on Nov. 6 and a formal Notice of Award was served on Nov. 12.
Duty Free International, however, disagrees with the award and plans to challenge it in the High Court under Malaysia's Land Acquisition Act.
The company said it cannot estimate the financial impact of the acquisition until the court process is complete and will provide further updates as developments occur.
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