Tien Wah exits banquet business with RM1 sale of Pacific Grand Ballroom tenant
Tien Wah Press Holdings has completed the RM1 disposal of Tien Wah Press Services Sdn Bhd, which holds tenancy rights to Pacific Grand Ballroom in Petaling Jaya, to Hong Kong-based Asia Regal Enterprises. The deal includes a separate arrangement for the recovery of RM14.14 million owed for renovatio
PETALING JAYA (Sept 22): Tien Wah Press Holdings Bhd has exited the banquet and events business conducted from Pacific Grand Ballroom in Petaling Jaya (PJ) by completing the RM1 disposal of Tien Wah Press Services Sdn Bhd (TWPS).
The disposal comes with a separate arrangement for the recovery of RM14.14 million owed by TWPS to Tien Wah for renovation and fit-out costs incurred for the banquet business. In a Bursa Malaysia filing on Monday (Sept 21), Tien Wah said all terms and conditions under the Aug 28 share sale agreement had been fulfilled, completing the sale of the group’s entire indirect equity interest in TWPS to Hong Kong-incorporated Asia Regal Enterprises Ltd (AREL).
TWPS had been assigned the rights, title and interest of Tien Wah Properties Sdn Bhd (TWP) as tenant under the tenancy agreement for Pacific Grand Ballroom, a multipurpose banquet hall on Level 6 of New Ocean World Fine Food City at No 15, Jalan 19/1, Section 19, PJ, Selangor. The rights were assigned to TWPS in December 2024 with the landlord’s consent. The tenancy runs until July 31, 2030.
The transaction does not involve the sale of the ballroom or the building in which it is located. It involves the disposal of TWPS, the company to which TWP’s rights as tenant had been assigned. TWPS was held through TWP, a wholly-owned subsidiary of Tien Wah. Following the disposal, TWPS has ceased to be an indirect wholly-owned subsidiary of the listed group, and its financial results will no longer be consolidated into Tien Wah’s accounts.
Under the agreement, AREL undertook to repay, or procure TWPS to repay, the RM14.14 million indebtedness in full and without interest through seven instalments. The first instalment of RM1.2 million was due upon execution of the agreement, followed by five instalments of RM2 million each and a final RM2.94 million payment. The remaining payments are due between June 2027 and December 2029.
Until the debt is repaid in full, AREL has also given undertakings restricting dealings in the shareholdings of Singapore-based Benline Investment Holdings Pte Ltd and Vietnam-based Fuji Paper Manufacturing Co Ltd, as well as specified leasehold land in Binh Duong Province, Vietnam. Tien Wah previously said the disposal would allow the group to exit an underperforming business that had adversely affected its financial performance, reduce future operational and financial exposure, and facilitate recovery of the amount owed.
At the time the transaction was announced, TWPS had net liabilities of about RM5 million. AREL is principally involved in wholesale general merchandise and investment holding. Its sole director and shareholder is Tan Meng Jong.
