Hong Kong based Vodoke Asia Pacific Limited, via its fully owned subsidiary in Singapore, Vodoke Pte Ltd is seeking a total of US$34.54 million (approximately RM144.39 million) from Telekom Malaysia Bhd (TM) from a dispute in 2015.
Vodoke is an IPTV (Internet Protocol television) solution provider with offices in Singapore, China and Malaysia. It has customers across Telcos, Hospitality, Healthcare and in the Mining industries.
TM, the self-claimed National 5G Infrastructure Provider, in a filling to Bursa Malaysia said it received a notification from the Registrar, Singapore International Arbitration Centre of the commencement of an arbitration by Vodoke Pte Ltd.
Vodeke said that TM failed to pay for an initial order of 30,000 units of VPL’s “IPTV Package” in 2015.
TM said it will “defend” the claim.
Bursa Malaysia announcement:
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Telekom Malaysia Berhad (“TM”) wishes to announce that it has on 4 March 2020 received notification from the Registrar, Singapore International Arbitration Centre of the commencement of an arbitration by Vodoke Pte Ltd (“VPL”) against TM. Based on a Notice of Arbitration dated 21 February 2020, VPL has referred its dispute with TM in relation to a Collaboration Agreement entered into between VPL and TM (“CA”) to arbitration under the Singapore International Arbitration Centre.
VPL is seeking the following reliefs from TM:
(a) An order that TM pays VPL the sum of USD 540,000 owing in respect of VPL’s invoice no. TM16090001 dated 1 September 2016 or alternatively, damages for failing to pay the full amount due under the initial order of 30,000 units of VPL’s “IPTV Package” in 2015;
(b) An order that TM pays VPL reasonable damages, to be assessed, for its breach of clause 5.2 of the CA read with clause 1.1, which defines the term “Minimum Purchase Order”, and in clause 2.1, which defines the period of the CA. In this regard, an initial quantification of damages as a result of TM’s breach, is estimated to be in the region of USD 34 million;
(c) An order that TM pays VPL reasonable damages including but not limited to damages for the loss of advertising revenue, such damages to be assessed, for its breach of clause 3.1 of the CA; and
(d) An order that TM pays VPL reasonable damages including but not limited to damages for the loss of advertising revenue, such damages to be assessed, for its breach of clauses 11.2 and 11.3 of the CA.
TM has instructed its solicitors to take the necessary steps to defend the claim.
TM shall make further announcement if there are any material developments in respect of this matter.
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