KUALA LUMPUR, Epicon Bhd said on Wednesday that Tan Chong Industrial Equipment Sdn Bhd (TCIE), a wholly owned unit of Tan Chong Motor Holdings Bhd, is demanding RM26.15 million from the company under a settlement agreement tied to bus lease and maintenance debts. Epicon, formerly Konsortium Transnasional Bhd, said it received a letter of demand on Tuesday from TCIE’s legal representatives.
The claim relates to obligations of Epicon’s former subsidiaries — Transnasional Express Sdn Bhd, Plusliner Sdn Bhd, Syarikat Kenderaan Melayu Kelantan Bhd, Syarikat Rembau Tampin Sdn Bhd and Kenderaan Langkasuka Sdn Bhd.
At the core of the dispute is a July 2016 settlement that resolved debts under 64 lease contracts and 87 maintenance contracts with TCIE. As part of that deal, Epicon transferred a 95,434 sq m land parcel in Ampang valued at RM16 million. However, subsequent valuations in 2017 by the government (RM51.36 million) and an independent valuer (RM55.6 million) led Epicon to claim TCIE had been unjustly enriched by RM22.68 million.
Although the High Court initially ruled in Epicon’s favour in 2021, TCIE later succeeded in overturning the decision, with the Federal Court affirming the dismissal of Epicon’s suit in February 2025.
TCIE is now seeking full repayment of RM26.15 million plus late payment interest of 0.75% per month from April 1, 2025, until settlement, with payment due within 14 days.
Epicon said it has appointed solicitors to respond and believes it has strong grounds to defend against the claim. “At this juncture, the company does not foresee any financial or operational impact from this matter,” it said in a Bursa Malaysia filing.
The group has already exited the bus business after selling Park May Bhd — which owned Transnasional, Plusliner, SKMK, SRT and Langkasuka — to Nadicorp Holdings Sdn Bhd in 2023 as part of its PN17 regularisation exercise.
Epicon has since pivoted to property development, recently announcing a RM72.13 million joint venture with NCT Alliance Bhd to build terraced homes in Batang Kali.
As at June 30, 2025, Epicon reported cash of RM10.42 million and pledged fixed deposits of RM12.55 million. Total assets stood at RM259.16 million, including RM140.5 million in trade receivables. Its shares rose two sen, or 15.38%, to 15 sen on Wednesday, valuing the company at RM90.76 million. The stock has fallen 42% year-to-date.
