MMAG's payment schedule for Penang land acquisition revised amid Covid-19 crisis

KUALA LUMPUR (April 22): MMAG Holdings Bhd, which is buying two parcels of land in mainland Penang from Dynaciate Group Bhd for RM41 million, today entered into a supplemental agreement on the deal.

The agreement entails a revised schedule for the payment of RM8.2 million, being the second out of five payment tranches, for the contiguous industrial land in Sungai Bakap.

The amount is now payable within 12 months, instead of six months, from the date of the sale and purchase agreement. The SPA was signed on Oct 18 last year.

"Save for the above, all other terms and conditions contained in the SPA shall remain unchanged and continue to be in force," said MMAG.

The company said it requested for the longer period in view of the challenging business environment caused by the Covid-19 pandemic.

MMAG said it paid the first payment tranche or deposit sum of RM2.05 million upon signing the SPA. The sum accounted for 5% of the total purchase price.

It is scheduled to make the third, fourth and fifth payment tranches totalling RM30.75 million within three and a half years upon settling the full payment of the second tranche.

MMAG, which owns Line Clear Express & Logistics Sdn Bhd, is acquiring the land to expand its logistics business by developing a regional hub and warehouse on the 5.1ha site.

The new warehouse will increase Line Clear’s warehouse and storage land area from the current 726,097 sq ft to up to 1,276,022 sq ft, according to Bursa filings.

Currently, the company has a warehouse-cum-office in Subang Jaya, as well as 45 branches and depots nationwide.

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