KUALA LUMPUR (June 19): Y&G Corp Bhd has withdrawn plans to buy two adjacent parcels of freehold land totalling 23.39ha in Pontian, Johor, for RM30.96 million.

In a filing with Bursa Malaysia yesterday, Y&G said this follows the expiry of the last extended conditional period on May 26 whereby the conditions precedent as stated in the sale and purchase agreement (SPA) have not been fully complied with.

"Y&G's wholly-owned indirect subsidiary Melia Aktif Sdn Bhd (MASB) has decided not to proceed further with the said SPA. Hence, MASB, via its solicitors, has on June 14 served the vendors’ solicitors a notice of its decision to exercise its right to discontinue with the purchase hereof and in terminating the said SPA," it added.

With the termination, the vendors are expected to refund MASB the deposit of RM3.1 million within 14 days.

"Further announcement on the material development, if any, will be made to Bursa in due course," said Y&G.

On Aug 25, 2015, MASB had entered into two SPAs with the vendors for the proposed land acquisition.

The proposed land acquisition was part of Y&G Group’s objective of concentrating on its core businesses of property development by further increasing its land bank size. It was expected to contribute positively to Y&G Group’s revenue, profit and cashflow from the financial year ending Dec 31, 2016 onwards.

This article first appeared in The Edge Financial Daily, on June 19, 2018.

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