ASPEN Group on Wednesday (Mar 15) said its subsidiaries have settled out of court with Penang Development Corporation (PDC) over the party’s claim for a RM15 million (S$4.6 million) refund.

With the global settlement, the legal suits against Aspen Vision Land and Aspen Vision City in the High Court of Malaya at Penang, Malaysia will be withdrawn, the group said. 

The group did not disclose any settlement sum, but said the agreement provides it an opportunity to avoid protracted legal proceedings with PDC and to focus the group’s resources on revenue-generating activities instead. 

Aspen said the agreement is not expected to have a material financial impact on the consolidated net tangible assets or earnings per share of the group for its financial year ending Jun 30.

On Feb 12, it was reported that PDC was seeking a declaration that the obligation to construct the ingress “has been frustrated or impossible to perform”, along with the refund of RM15 million for the construction of the ingress within 14 days from the date of judgment.

At that time, Aspen said it denies the construction has been frustrated or impossible to perform as alleged by PDC. 

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Aspen shares closed flat at S$0.032 on Wednesday.