In a filing with Bursa Malaysia, Spring Gallery said its wholly-owned subsidiary Million Rich Development Sdn Bhd (MRDSB) had today accepted a letter of intent (LoI) from VRS for the proposed development and operation of the theme park, which is planned to be built on nine pieces of land collectively measuring approximately 292,795 square meters.
According to Spring Gallery, MRDSB was given the rights from Arena Progresif Sdn Bhd and Titanium Hallmark Sdn Bhd to collaborate with VRS on the proposed development via the concept masterplan as well as the supplemental agreements as announced on Dec 15, 2017.
Under the LoI, MRDSB is required to conduct the market analysis and feasibility report for the proposed development and bear the cost of the study. VRS, on the other hand, will continue to perform the due diligence process.
Spring Gallery said there will be no effect on the group's gearing as requirements under the LoI do not involve any bank borrowing.
"The board envisages that the LoI is expected to contribute positively to the overall earnings as well as the earnings per share of the SGB (Spring Gallery) Group once the potential benefits from the proposed development is materialised," it said.
Shares in Spring Gallery settled 7.4% or 5.5 sen higher at 80 sen, valuing it at RM154.6 million. — theedgemarkets.com