1.         Background and Details of Judicial Review Application

Pursuant to Paragraph 9.03 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce that its wholly owned subsidiary Commercial Marketers and Distributors Sdn Bhd (“CMD”) received a letter dated 21 October 2019 issued by the Deputy Director General of Health (Public Health) (Ministry of Health) (“MOH”) to revoke its approval granted on 12 July 2018 (“MOH Approval”) for CMD to sell Dunhill HTL-Cigarillo (“Cigarillo”) as a non-cigarette tobacco product (“Revocation Decision”). In the said letter, MOH informed CMD that upon an analysis of Cigarillo, MOH found that Cigarillo falls within the definition of a cigarette under the Control of Tobacco Product Regulations 2004 (“CTPR”) and Cigarillo will be required to comply with the restrictions applicable to cigarettes under the CTPR (“Re-Categorisation Decision”).

Upon consultation with CMD’s solicitors and after due deliberation, CMD has on 14 November 2019 filed an application for judicial review as an applicant against the Revocation Decision and the Re-Categorisation Decision (collectively, “MOH Decisions”) at the Kuala Lumpur High Court (“JR Application”). MOH was named as the respondent in the JR Application.

In the JR Application, CMD sought for the following reliefs:

(a)        that CMD be granted leave to apply for an order to quash the MOH Decisions;

(b)        for declarations that the MOH Decisions are null and void; and

(c)        for damages to be assessed in respect of all loss and injury sustained by CMD by reason of and/or incidental to and/or arising from the MOH Decisions in relation to the Cigarillo.

2.         Financial and Operational Impact on the Company and its subsidiaries (“BATM Group”)

In the event that CMD succeeds in its JR Application, CMD may be awarded with damages in the amount to be assessed by the Kuala Lumpur High Court.

3.         Estimated Potential Liability to BATM Group

There is no estimated potential liability to BATM Group arising from the JR Application as the JR Application was initiated by CMD as an applicant.

The Company will make the necessary announcements once there is a material development in relation to the above matter.

This announcement is dated 14 November 2019.