Low Tuck Kwong sues Peter Kwee for A$9.6 million over alleged material defects

[SINGAPORE] Indonesian coal mining billionaire Low Tuck Kwong and his company are suing motoring tycoon Peter Kwee and another individual for A$9.6 million (S$8.5 million) over alleged material defects, after buying out their shares in a group of companies that own properties.

Before Low and Energy Resource Investment bought over the remaining 51 per cent stake, he and his company were minority shareholders while Kwee and Chan Kok Choon were majority shareholders of the three entities: International Golf Resorts, Joondalup Country Club and Kingsfield Corporation.

These companies’ assets include a hotel, two country clubs with a golf course each, and residential properties in Australia, based on the statement of claim dated Nov 13, 2025.

Low and Energy Resource Investment entered into a share purchase agreement with Kwee and Chan for more than S$32.2 million in June 2025, with due diligence to be performed after the transaction as Kwee had wanted to execute the agreement “urgently”.

The claimants now allege that the properties had “material” defects, for which Kwee and Chan had agreed to indemnify the costs of rectification. This included setting off S$3 million in a remaining payment to Kwee against the rectification costs.

They said that the agreement also required Kwee to give a response on the flagged defects within a stipulated timeframe, but he did not do so.

Therefore, they contended that they are entitled to offset the S$3 million against the rectification costs, and to claim the remaining A$9.6 million from the defendants.

According to Forbes, Low, a Singapore permanent resident, was the fourth-wealthiest person in Indonesia in 2025. Kwee hit the big time when he became a distributor for Renault and Volkswagen vehicles in the early 2000s.

Defendants dispute the defects are material

In a defence filed on Jan 2, Kwee and Chan pointed out that they were not legally represented in the transaction, whereas Low had law firm Drew & Napier draw up the agreement.

Given that they did not obtain legal advice and did not carefully consider the warranties granted, the defendants claimed they did not understand the scope of the warranties and that these were beyond the matters discussed during negotiations.

Kwee and Chan also argued that the due diligence the claimants had sought was to look into the finances of the three companies, and not the state and condition of the properties.

The defendants added that as longtime shareholders, managers and/or directors of the companies, the claimants were aware of the condition of the properties and assets.

Kwee and Chan also denied that the alleged defects were material, and pointed out that the reports from the claimants were bereft of details. They attributed Kwee’s response delay to the claimants providing the reports for two of the purported defects only after the defendants had requested them.

Kwee is making a counterclaim for the S$3 million from Low and Energy Resource Investment, who said they would offset the sum from the rectification bills.

The case is at pre-trial phase.