UEM Sunrise aborts plan to sell stake in South African firm

• UEM Sunrise said both the group and the purchaser, Olive Investment Trust, have mutually agreed to discontinue with the proposed divestment since the settlement of the consideration was not concluded and settled within the prescribed time.

KUALA LUMPUR (Dec 16): Property developer UEM Sunrise Bhd has aborted plans to dispose of its 80.4% stake in South Africa-based Roc-Union Proprietary Ltd for 142.6 million rand (RM38 million).

In a bourse filing on Friday (Dec 16), UEM Sunrise said both the group and the purchaser, Olive Investment Trust, have mutually agreed to discontinue with the proposed divestment since the settlement of the consideration was not concluded and settled within the prescribed time.

On Aug 19, UEM Sunrise had announced that its indirect wholly-owned subsidiary UEM Sunrise South Africa Proprietary Ltd had signed an agreement to sell the stake, together with claims, to Olive Investment Trust. The claims relate to the total shareholder advances given by UEM Sunrise to Roc Union.

UEM Sunrise had said then that the divestment of the South African firm was in line with its turnaround strategic plan to realign its operations geographically and redirect resources to businesses and areas which offer greater potential.

"Both parties are re-evaluating the entire divestment proposal and considering engaging in fresh discussions on the subject matter. Further announcements will be made as and when there are material developments on the matter," UEM Sunrise said in Friday's filing with Bursa Malaysia.

UEM Sunrise shares closed up 0.5 sen or 1.96% at 26 sen on Friday, translating into a market capitalisation of RM1.32 billion.