ILB aborts RM16 mil Petaling Jaya land purchase

• The logistics services company and Impian Nuri Sdn Bhd have mutually agreed to terminate the deal, after a condition precedent could not befulfilled by the Oct 31 deadline, said ILB in a bourse filing.

KUALA LUMPUR (Oct 20): ILB Group Bhd is aborting its planned purchase of 1,124 sq m of freehold commercial land with shoplots in Petaling Jaya for RM15.9 million.

The logistics services company and Impian Nuri Sdn Bhd have mutually agreed to terminate the deal, after a condition precedent could not befulfilled by the Oct 31 deadline, said ILB in a bourse filing.

This comes over three months after ILB inked the agreement with Impian Nuri, as well as after the pair mutually agreed to three consecutive extension periods ― which pushed the deadline from July 29 to Oct 31.

The agreement’s condition precedent was Bursa Securities’ approval of ILB’s additional listing of 37.78 million new shares, which were to be used as the purchase consideration for the land acquisition at an issue price of 42.11 sen per share.

According to ILB’s previous filings, the company had submitted the application for the listing of the shares to Bursa Securities on July 7 but then withdrew the application on Aug 8, after deciding to resolve litigation matters.

One of the litigation matters relates to a requisition from shareholders holding over 10% of ILB’s issued capital to convene an extraordinary general meeting (EGM) to revoke the company’s general mandate to issue shares. ILB has filed a lawsuit seeking a declarion that the requisition notice for the EGM was invalid. Case management for the suit is fixed for Oct 26.

Separately, BT Investment Capital Ltd, a minority shareholder of ILB, has filed a suit against the company and its board members, in an attempt to block the land acquisition, saying that the transaction would dilute shares owned by existing shareholders. ILB made a bid to strike out the suit, but the application was struck out by the court.

Shares of ILB ended 3.5 sen or 7.07% higher at 53 sen on Thursday (Oct 20), giving the company a market capitalisation of RM103.36 million.