DRB-Hicom Bhd, one of Malaysia’s leading companies, has rescinded its agreement to sell a 90 percent stake in Corwin Holding Pte Ltd, which holds The Verge shopping mall in Singapore.
According to a recent stock exchange filing, DRB-Hicom’s indirect subsidiary Hicom Megah Sdn Bhd and Corwin’s minority shareholders, who own the remaining 10 percent share, have submitted a termination notice to the would-be-buyer, Evolutyon Real Estate Investment Holding Pte Ltd.
“The termination was due to the inability of the purchaser to fulfil its contractual obligations on the agreed completion date,” said DRB-Hicom.
“Arising from the termination, neither party shall owe any further obligations to the other in respect of the conditional share sale agreement (SSA), except as otherwise provided for in SSA. The vendors are of the view that the purchaser has no legal recourse against the vendors.”
Originally, Hicom Megah and the minority shareholders – B.I. Distributors Pte Ltd as well as Mohamed Mustafa & Samsuddin Co Pte Ltd – inked an SSA in December 2015 to divest the entire stake in the eight-storey mall to Evolutyon for RM937.5 million
In total, Hicom Megah’s investment in Corwin amounted to around RM224.94 million from 1997 to 2015.
Image: Sourced from Bebostudio.com.sg
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
