Hektar REIT cancels EGM on KYS KL East school acquisition pending SPA clarifications
Hektar Real Estate Investment Trust has cancelled a unitholders' meeting scheduled for Nov 16 to consider its RM125 million acquisition and lease of KYS KL East International School. The manager, Hektar Asset Management, cited outstanding conditions precedent under the sale and purchase agreement th
PETALING JAYA (Nov 7) — Hektar Real Estate Investment Trust (Hektar REIT) has cancelled a unitholders' meeting to consider its proposed RM125 million acquisition and lease of KYS KL East International School, pending clarification on outstanding conditions under the sale and purchase agreement (SPA). The extraordinary general meeting had been scheduled for Nov 16 at The Saujana Hotel in Shah Alam.
In a Bursa Malaysia filing on Friday (Nov 6), the board of its manager, Hektar Asset Management Sdn Bhd, said it understood that certain conditions precedent remained outstanding following the manager's assessment of the SPA. Further clarification was required from the vendor on the progress and status of their fulfilment.
The board said it had cancelled the meeting pending those clarifications and an assessment of potential implications, if any, for the terms or structure of the proposed acquisition and lease. It stressed that the cancellation did not, in itself, constitute a termination of the SPA or the proposed transaction.
The proposed acquisition involves Hektar REIT's trustee, MTrustee Bhd, acquiring a leasehold interest in part of the land held under Geran 78335, Lot 201057, in the mukim of Setapak, Kuala Lumpur, together with existing buildings and a new building to be constructed, from KYS College Sdn Bhd. The property comprises an international and private school known as KYS KL East International School.
The RM125 million purchase consideration would be satisfied through RM106.55 million in cash and the allotment and issuance of new Hektar REIT units with an aggregate value of RM18.45 million. The proposal also includes the novation of the master lease agreement to the trustee and the grant of a sublease by the trustee to KYS College or its nominee upon completion of the acquisition.
The board said cancelling the meeting would allow the manager to obtain greater clarity on the outstanding conditions and assess whether further action or consideration was required before seeking unitholders' approval. This would enable unitholders to make a more informed decision based on a more complete and updated position on the proposal if a fresh meeting were convened, it said.
The manager will continue to monitor progress and announce material developments on Bursa Malaysia, including any decision to convene a fresh unitholders' meeting, where appropriate or applicable.
