F&N considering options for RM156m Perlis land acquisition as seller rescinds agreement

KUALA LUMPUR (April 9): Fraser & Neave Holdings Bhd (F&N) said it is considering its options regarding the RM156 million acquisition of land in Perlis from MSM Perlis Sdn Bhd, as the latter had indicated that it will not grant any extension of time to satisfy the conditions in the agreement.

In a statement, F&N said MSM Perlis, a wholly-owned subsidiary of MSM Malaysia Holdings Bhd, had informed the group and its wholly-owned subsidiary F&N AgriValley Sdn Bhd on April 6 and 9 that there will not be any extension of time and that it rescinds the sale and purchase agreement (SPA) entered into by the parties on Oct 8, 2019.

MSM Perlis also said it will refund the retention sum held by its solicitors and the deposit to F&N AgriValley as per the SPA.

“Pursuant to the SPA, the stipulated timeline for F&N AgriValley to obtain the approval from the Ministry of Economic Affairs (formerly known as the Economic Planning Unit of the Prime Minister’s Department of Malaysia) (EPU) ends on April 8, 2020, which falls within the government's mandated Movement Control Order period between March 18 and April 14, 2020,” said F&N.

“In light of these developments, F&N and F&N AgriValley are considering [their] options. The board will make further announcements in this regard in due time,” it added.

F&N shares rose six sen or 0.19% to close at RM31.50 for a market capitalisation of RM11.55 billion.

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