KUALA LUMPUR (JULY 14): The plan to revive Bandar Malaysia (pictured) has been discontinued as the Restated and Amended Share Sale Agreement (RASSA) for the acquisition of 60% shares in Bandar Malaysia Sdn Bhd (BMSB) has lapsed on May 6, 2021.
TRX City Sdn Bhd and IWH-CREC Sdn Bhd today announced the deal has expired as the Conditions Precedent in the agreement have not been fulfilled by the respective parties within the Condition Precedent Period.
The RASSA for the sale of 60% shares of BMSB to IWH CREC Sdn Bhd (ICSB), the joint-venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd, was executed on Dec 17, 2019.
BMSB is wholly owned by TRX City Sdn Bhd, a 100% subsidiary of the Ministry of Finance, Malaysia.
To recap, the previously suspended Bandar Malaysia project was revived by the government in 2019 with an estimated gross development value (GDV) of more than RM140 billion.
The multi-billion ringgit integrated development sits on the single largest tract of 486 acres of premium land, the former site of the former Royal Malaysian Air Force base in Jalan Sungai Besi.
According to the press release, TRX City and ICSB had been working together to find solutions to preserve the partnership and to realise the common vision of unlocking Bandar Malaysia’s potential.
“Despite such efforts, to-date, the parties have not been able to mutually agree to the terms of the extension of the Condition Precedent Period. Thus, the Agreement is now deemed null and void,” said the statement.
Although the deal lapses, TRX City said it remains committed to realise the Bandar Malaysia vision, and any future business and commercialization plans will take into account market conditions and the national socio-economic agenda, to ensure that it continues to play its role as a significant economic enabler that will add substantive benefits for the country.
Meanwhile, China Railway Group Ltd said it will continue to work closely with TRX City in respect to any future co-operation in Malaysia. Iskandar Waterfront Holdings, meanwhile will continue to support the government’s efforts in nation-building.
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