KUALA LUMPUR: Leong Hup International Bhd and PPB Group Bhd poultry feed miller units have failed in their bid to hold off paying fines totalling RM200 million imposed by Malaysian Competition Commission's (MyCC) a year ago, for forming a price fixing cartel.
In separate filings with Bursa Malaysia Securities, the companies said the Competition Appeal Tribunal (CAT) dismissed their application to stay the MyCC's decision to collect the fines, pending their appeal against the MyCC's decision to the tribunal.
In December 2023, the MyCC imposed fines totalling RM415 million against Leong Hup Feedmill Malaysia Sdn. Bhd, PPB's FFM Bhd, Gold Coin Feedmills (Malaysia) Sdn. Bhd, Dindings Poultry Development Centre Sdn. Bhd. and PK Agro-Industrial Products (M) Sdn. Bhd for forming a poultry-feed price fixing cartel.
Besides fines, the five were also directed to cease participation in the cartel and submit reports on poultry feed price increases and decreases.
Leong Hup International said in the filing with the bourse, its unit Leong Hup Feedmill will file an application for leave for a judicial review against the CAT's decision on the stay application.
It will also seek an interim stay order in relation to the MyCC's decision requiring payment of the financial penalty.
Leong Hup Feedmill was imposed the highest fine amount between the five companies, at RM157.5 million.
PPB's FFM on the other hand said it would consult its legal counsels on the appropriate action(s) to take following the CAT's dismissal of its application.
FFM was fined RM42.7 million.
Leong Hup's share price was down three per cent to 64 sen, giving it a market capitalisation of RM2.3 billion.
While PPB's share price was down one per cent to RM12.90, giving it a market capitalisation of RM18.4 billion.