Paragon Globe substitutes buyer in RM398m Johor land deal

Paragon Globe Bhd has substituted the purchaser for two freehold land parcels in Tanjung Kupang, Johor, under its RM398.11 million disposal, following an internal restructuring within the DayOne group. The replacement buyer, DayOne Data Centers Malaysia I Sdn Bhd, assumes all rights and obligations

PETALING JAYA (Sept 29): Paragon Globe Bhd has substituted the purchaser of two freehold land parcels in Tanjung Kupang, Johor, under its proposed RM398.11 million disposal following an internal restructuring within the DayOne group.

Its wholly owned subsidiary, PGB Landmark Sdn Bhd, entered into an amendment and restatement agreement on Monday (Sept 28) with the original purchaser, DayOne Data Centers Malaysia III Sdn Bhd, and the replacement purchaser, DayOne Data Centers Malaysia I Sdn Bhd.

Under the agreement, DayOne Data Centers Malaysia I assumes the original purchaser’s rights, title, interests, benefits, obligations and liabilities under the June 23 sale and purchase agreement that arise or remain outstanding from Monday. DayOne Data Centers Malaysia III is released from obligations, liabilities, claims and demands arising from Monday, but remains liable for any earlier breach or liability accrued before then.

Paragon Globe said the original purchaser had paid RM228.91 million under the agreement. The payments will be deemed to have been made for the account of the replacement purchaser, and PGB Landmark will not be required to refund them. Early access to the land previously granted to the original purchaser will likewise be deemed granted to its replacement.

The RM398.11 million disposal consideration is unchanged. Apart from amendments required to substitute the purchaser and consequential changes, all other terms of the sale and purchase agreement remain in force. The proposed disposal remains subject to the approvals and conditions precedent set out in Paragon Globe’s June announcement.