Astral Asia gets RM2.34m deposit for proposed RM233.57m Kuantan land sale
Astral Asia Bhd has received a RM2.34 million interim deposit from HNG Capital Sdn Bhd under a memorandum of understanding for the proposed RM233.57 million sale of 2,433 acres in Kuantan Hi-Tech Park, Pahang. The land, owned by subsidiary Astral Asia Plantation Sdn Bhd, is earmarked for a solar far
PETALING JAYA (Oct 13): Astral Asia Bhd said its landowning subsidiary's solicitors, acting as stakeholders, have received a RM2.34 million interim deposit from HNG Capital Sdn Bhd under a memorandum of understanding (MOU) to explore a proposed RM233.57 million land sale at Kuantan Hi-Tech Park, Pahang.
In a Bursa Malaysia filing on Monday (Oct 12), the group said the RM2,335,680 deposit, equivalent to 1 per cent of the indicative purchase consideration of RM233,568,000, was received within the timeframe stipulated under the MOU. HNG Capital will proceed with technical, legal and financial due diligence on the land during the exclusivity period under the MOU, and may terminate the MOU if it reasonably determines that the due diligence results are unsatisfactory.
The proposed disposal involves three parcels totalling approximately 2,433 acres in Mukim Kuala Kuantan, owned by Astral Asia's subsidiary, Astral Asia Plantation Sdn Bhd. The land represents approximately 25 per cent of the group's total land area. Astral Asia Plantation entered into the MOU announced on Oct 9 to explore the sale of the land to HNG Capital or its nominee for solar farm and green energy development. The indicative consideration is subject to adjustment based on the final surveyed area.
Astral Asia's wholly-owned subsidiary, Tasja Development Sdn Bhd, holds a power of attorney from Astral Asia Plantation granting it exclusive authority to facilitate and negotiate the proposed sale on the landowner's behalf. A definitive sale and purchase agreement (SPA) has yet to be executed. Under the MOU, the parties are required to enter into the SPA within the stipulated period.
Upon execution, HNG Capital is to pay an earnest deposit equivalent to 2 per cent of the indicative consideration, or RM4,671,360. The interim deposit will be set off against the earnest deposit, leaving a further RM2,335,680 payable upon signing. Completion of the proposed disposal would be subject to the fulfilment or permitted waiver of conditions precedent to be set out in the SPA, including approvals from HNG Capital's board of directors and shareholders, and relevant consents for the sale and transfer of the land, including state authority consent and estate land board approval, where applicable.
Astral Asia said the proposed disposal forms part of its strategy to realise value from existing assets and redeploy the proceeds into future land acquisitions to strengthen and expand its land bank. The group said entering into the MOU was not expected to have any immediate material effect on its issued share capital, net assets, earnings per share or gearing for the financial year ending Dec 31. Detailed financial effects of the proposed disposal will be disclosed upon execution of the definitive SPA.
