Sapura Brothers Reach Amicable Truce, Ending Sapura Holdings Winding Up Dispute

KUALA LUMPUR (Jan 21): The case brought by Sapura Holdings Sdn Bhd (SHSB) director Datuk Shahriman Shamsuddin against his brother SHSB group chief executive officer Tan Sri Shahril Shamsuddin, SHSB, and Datuk Rameli Musa to wind up the company has been amicably settled out of court. This was disclosed to High Court judge Leong Wai Hong on Wednesday morning by lawyers representing all parties. While proceedings were held in camera, Shahriman’s counsel Gopal Sreenevasan from Endeavour Group Law Practice, who appeared with Kelvin Seet Wan Nam from Messrs Cheang and Ariff, confirmed the settlement to the media. This was corroborated by Shahril’s counsel Datuk Ahmad Redza Abdullah from Messrs Redza Eleena Chong. Saw Wei Seang from Messrs Nethi & Saw, representing director Rameli, and Nur Syafinaz Vani Abdullah from Messrs Zul Rafique and Partners, representing SHSB, were also present. “The petition has been settled and withdrawn. The terms of the settlement were done on confidential terms,” Gopal told The Edge outside court. None of the family members was present in court on Wednesday. However, Gopal said the settlement was reached mutually between the parties. Earlier, lawyers were seen exchanging documents and discussing among themselves before being summoned to Leong’s chambers. This ends the legal tussle between the brothers over the company since the winding-up petition was filed on Sept 23, 2024. Shahriman had filed the winding-up petition on the basis that it was necessary for a fair asset distribution. However, Shahril opposed the move, claiming the company is not a family company. Shahril and minority shareholder Rameli stated in separate affidavits that SHSB is not a family company. SHSB was the third respondent in the case. Shahril and Shahriman are equal shareholders of SHSB, holding 40.5% each, while their jointly owned vehicle, Brothers Capital Sdn Bhd, holds a 15% stake. Rameli owns a 4% interest in the company. The main dispute concerned the fair division of assets, particularly the jointly owned Permata Sapura office project with KLCC Holdings, which is said to have triggered the dispute between the two brothers. Sapura patriarch and founder Tan Sri Shamsuddin Abdul Kadir stated in a separate affidavit that he had founded the entity as a family company, to be controlled and run equally by his two sons. Shahriman filed the winding-up petition last year on the grounds that it was “just and equitable to do so”, arguing that “there has been a complete breakdown in the relationship of mutual trust and confidence” between him and Shahril, who “no longer trust each other, and they agree that they can no longer work together”. The dispute has its roots in a development project dubbed Project Apex, which involved the construction of Permata Sapura, a 52-storey skyscraper near KLCC, close to the Petronas Twin Towers in the city centre. Shahriman was of the view that Sapura Resources Bhd (KL:SAPRES) lacked the capital to build and operate Permata Sapura and suggested that the building be sold. Shahril, on the other hand, believed that a cash call, with shareholders injecting funds into Sapura Resources, would resolve the issues. Sapura Resources, which had already received financial assistance of RM168 million from Sapura Holdings, proposed as a settlement the issuance of 373.33 million preference shares at 45 sen each, together with a proposed rights issue to raise RM33.5 million. Project Apex was a 50:50 joint venture formed by Sapura Resources and KLCC Holdings Sdn Bhd in 2011 to develop and construct Permata Sapura for about RM108.5 million in cash. The joint venture company, Impian Bebas Sdn Bhd, eventually invested about RM1.26 billion to build Permata Sapura. A key component of Project Apex was that three related companies — Sapura Energy Bhd, SEB Upstream Sdn Bhd, and Sapura Secured Technologies Sdn Bhd — would sign a master lease agreement with Sapura Resources as tenants. However, this did not materialise after Sapura Energy, once an oil and gas giant, came under the control of Permodalan Nasional Bhd (PNB) following a cash call in 2018. PNB emerged with a 40% stake in the ailing company after Sapura Energy raised RM4 billion — RM3 billion from a five-for-three renounceable rights issue at 30 sen each, and RM1 billion from a two-for-five renounceable rights issue of new Islamic redeemable convertible preference shares at 41 sen each. PNB also took up unsubscribed rights shares, resulting in its shareholding rising to 40% from 12.6%. In April 2023, KLCC Holdings proposed that Sapura Resources pay RM85 million to exit Project Apex if it wished to withdraw from the joint venture. Shahriman supported the proposal, while Shahril opposed it. There are other legal battles involving the family. Sapura Resources and its subsidiaries initiated legal proceedings against Shahriman in April 2025. The company is suing Shahriman for breaches of fiduciary, statutory and contractual duties, as well as conspiracy to injure the companies.