Sunway to dispute Perak’s demand for return of undeveloped land

KUALA LUMPUR (June 14): Sunway Bhd’s subsidiary Sunway City (Ipoh) Sdn Bhd plans to dispute a notice from the Perak state secretary requesting it to return an undeveloped portion of land to the Perak government.

In a filing with Bursa Malaysia yesterday, Sunway said the notice states that a development agreement between Sunway City and the state government signed on Sept 11, 1997 had lapsed.

The notice also accordingly requested Sunway City to return the undeveloped portion of the land to the government.

“Sunway City shall dispute the notice and refer the matter to arbitration pursuant to the development agreement,” said Sunway.

The group added that the notice is not expected to have any material effect on its earnings per share and net assets per share for the financial year ending Dec 31, 2016 and beyond.

Sunway’s share price dipped one sen or 0.33% to RM3.01 yesterday, valuing the company at RM5.93 billion.

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This article first appeared in The Edge Financial Daily, on June 14, 2016. Subscribe to The Edge Financial Daily here.