Salutica falls to lowest in nearly nine months after suit against Apple dismissed

KUALA LUMPUR (July 5): Shares of Salutica Bhd (KL:SALUTE) fell to their lowest in nearly nine months, and the sharp decline prompted the suspension of intraday short-selling of the electronics manufacturing services firm’s stock.

Salutica fell as much as 26% or 18 sen to 50 sen, its lowest since Oct 20, 2023. At 3.45pm, the stock was trading at 58.5 sen, valuing the company at RM250 million on Bursa Malaysia. Trading volume totalled 23.77 million shares.

Intraday short-selling will be suspended when the last price of an approved stock falls more than 15% or five sen from the previous day’s price. Intraday short-selling of Salutica shares will only be allowed to resume on Tuesday.

Salutica’s legal suit against Apple, filed in November last year for alleged patent infringement, was dismissed by the court, the company said in an exchange filing on Friday.

On Nov 16, 2023, Salutica’s wholly owned unit Salutica Allied Solutions Sdn Bhd filed the suit against Apple’s Singapore-based subsidiary Apple South Asia Pte Ltd.

The suit sought, among others, a declaration that its patent is valid and has been infringed by Apple South Asia, and an injunction to restrain Apple from making, disposing of, using, importing, or keeping products that infringe the patent.

The suit was filed at Singapore’s High Court.

“The Assistant Registrar of the Court has allowed the defendant’s (Apple South Asia) application to strike out the plaintiff’s (Salutica Allied Solutions) claim,” Salutica said. “Nevertheless the striking out is without prejudice to recommencing the action.”

Loss-making Salutica is 50.6%-controlled by Ocean Enlightenment Sdn Bhd, a family vehicle held by managing director Joshua Lim and his father James Lim Chong Shyh, the former chief executive officer of Salutica.

For the third quarter ended March 31, 2024, Salutica widened its net loss to RM8.97 million from RM5.69 million a year earlier, while revenue declined to RM4.72 million from RM11.76 million.

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