BUSINESSMAN Halim Saad has taken legal action against Dr Mahathir Mohamad, former finance minister II Nor Mohamed Yakcop, and the government over the acquisition of Renong Bhd.

Halim’s civil action suit, filed on August 2 at the Kuala Lumpur High Court, is over the government’s alleged deprivation of his rights as a controlling shareholder of the troubled firm Renong in 2001.

The statement of claim sighted by Malaysiakini said the plaintiff claimed the acquisition was done via virtue of Khazanah Nasional Bhd effecting a takeover of UEM Malaysia Bhd at the direction of the government as part of a compulsory acquisition between July and October 2001.

Halim said the acquisition affected 372 million shares in Renong, and that Dr Mahathir and Nor Mohamed were part of the acquisition.

Halim said the shares belonged to him and not Umno, where at the material time, the company held 37.92% stake in UEM.

He wanted to make a general offer (intended GO) for UEM, either through Renong or jointly with Renong, to privatise as a subsidiary of Renong.

“The plaintiff was however directed by Dr Mahathir, through Nor Mohamed, not to proceed with the intended GO as the government wanted, and instead to acquire all the shares in UEM through a designated entity, Khazanah Nasional Bhd, or a party it was to nominate.

“In line with this, the plaintiff was also directed to exit both UEM and Renong, both as shareholder and director, including from the subsidiaries of the said companies,” he said.

Halim said this required him to cede control over Renong and UEM to the government, and to eventually dispose of his Renong shares at a loss.

“The plaintiff complied with the direction as Dr Mahathir was then the prime minister and finance minister.

“In the upshot, Khazanah acquired all the shares in UEM through its subsidiary, Syarikat Danasaham Sdn Bhd, thereby gaining control of UEM, which at material time held 32.6% of Renong.

“In this way, the government acquired UEM indirectly and gained control and indirect ownership of the Renong group.”

Halim said the acquisition of the vested right and the deprivation of his rights as a controlling shareholder of Renong – key aspects of the acquisition exercise by the government – were affected, in contravention of article 13 of the Federal Constitution.

He also said he was not compensated for the acquisition of the vested right and deprivation of his right as controlling shareholder of Renong, both of which were critical to the takeover of UEM and Renong by the government.

The plaintiff claimed despite receiving RM165 million from Khazanah Nasional, it did not represent the true value of his vested right and Renong shares.

Halim said RM100 million of the RM165 million was to compensate him for having paid RM100 million to UEM for a “Put Option”, which the government then was required to lapse.

He said the remaining RM65 million was to compensate him for losses due to foreclosure of various assets pledged by him to various financiers for the financing of the RM100 million.

Halim alleged when he met Mahathir on April 23, 2010, the former prime minister told Halim he heard from Nor Mohamed that the plaintiff’s Renong shares were in fact owned by Umno, so the government saw no reason to compensate him.

Among reliefs sought by Halim is a declaration the government was obliged to provide him with adequate compensation for the acquisition. – August 9, 2023.