TRIplc down 10.7% after scrapping Sungai Buaya land disposal

KUALA LUMPUR (Aug 22): Shares in construction form TRIplc Bhd were down as much as 18 sen or 10.7% to RM1.68 this morning, as the company announced last Friday (Aug 19) that it has scrapped its plans to dispose of its nearly 340-acre piece of land in Sungai Buaya, Selangor, to Worldwide Holdings Bhd.

To recap, TRIplc had announced on Sep 21 last year that its wholly-owned subsidiary Zuriat Watan Sdn Bhd had received a confirmation of acceptance from Worldwide for the land disposal at a price of RM140.15 million.

However, the company told the exchange that negotiation on the proposed disposal has deviated from the original understanding and TRIplc has not reached an agreement to the terms of the proposed disposal.

On another note, Puncak Niaga Holdings Bhd had entered into a heads of agreement (HoA) with TRIplc on April 18 for the potential acquisition of the latter's businesses.

The two were supposed to conclude discussions for the acquisition by Aug 17, but had extended the HoA and due diligence period to Nov 17 to facilitate the ongoing discussions and negotiations.

Puncak Niaga executive chairman Tan Sri Rozali Ismail is a substantial shareholder in both companies.

At 11.55am, TRIplc shares were trading down 11 sen (5.9%) to RM1.75, for a market capitalisation of RM118.5 million. — theedgemarkets.com

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