Encorp calls off preliminary deal with Kean Leng to develop Bukit Katil landbank
KUALA LUMPUR (July 21): Encorp Bhd, which inked preliminary agreements with several companies last year to develop its huge 641-acre landbank in Melaka, has called off one of them.
It said it has mutually agreed with Kean Leng Construction Sdn Bhd not to further extend the memorandum of understanding (MoU) they inked, which will lapse on July 31.
The MoU was to form a strategic alliance for the development of its Bukit Katil Land to allow Encorp to kick-start the development without incurring massive capital outlay, according to Encorp's announcement when the MoU was first inked last October.
"Upon the MoU expiry, neither party shall have any claim against the other, save and except for any antecedent claim," it said in a Bursa Malaysia filing this evening.
It added that the expiry of the MoU will not have any material financial impact on the Encorp Group.
Besides Kean Leng, the group inked similar memoranda of understanding with two others last year, i.e. the subsidiaries of Tiong Nam Logistics Holdings Bhd and Sinmah Capital Bhd, formerly Farm's Best Bhd.
Early last month, Sinmah announced a proposed tie-up with Encorp for the mixed Melaka project — estimated to carry a gross development value of RM865 million on 77.94 acres of leasehold land in Bukit Katil. Sinmah will have a 70% stake in the joint venture (JV) company, with Encorp owning the remainder stake.
As for its MoU with Tiong Nam, Encorp said in a separate announcement today that it is still in the midst of negotiating the terms of their JV agreement.
Shares in Encorp closed two sen higher or 2.9% at 71 sen today for a market capitalisation of RM197.57 million. — theedgemarkets.com
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