Sand Nisko Capital and Evergreen More scrap plans to jointly develop project in Melaka

• The two parties were not able to agree on the appointment of the relevant contractors and sub-contractors and also their plans in the execution of the proposed development.

KUALA LUMPUR (May 23): Rubberwood furniture maker Sand Nisko Capital Bhd (SNC) no longer plans to co-develop a mixed development in Alor Gajah, Melaka with privately-held Evergreen More Sdn Bhd (EMSB).

On May 9, its wholly-owned subsidiary Len Cheong Industries Sdn Bhd had entered into a heads of agreement (HOA) with EMSB to set forth the intentions and commitments in establishing a collaboration to undertake the mixed development. EMSB, which is jointly owned by two individuals Teow Wooi Huat and Teow Chee Chow, is the land owner of three adjoining plots of leasehold land spanning 519.5 acres.

In a filing with Bursa Malaysia on Tuesday (May 23), SNC said pursuant to discussions on the terms for the joint development, the two parties, however, were not able to agree on the appointment of the relevant contractors and sub-contractors and also their plans in the execution of the proposed development.

"As such, the parties are not able to finalise the definitive agreement and the parties have mutually agreed to terminate the HOA via the execution of a letter of termination on May 23," it added.

SNC said the termination will not have any material impact on the group's issued share capital, substantial shareholders’ shareholdings, net assets, gearing, earnings and earnings per share for the financial year ending Dec 31, 2023.

"The group remains committed to pursue strategic collaborations and/or investment opportunities that align with its long-term growth strategy. The group will continue to explore potential projects and partnerships to expand its construction and property development businesses," it noted.

SNC shares closed unchanged at 17.5 sen on Tuesday, with 563,800 shares changing hands. Its market capitalisation stood at RM43.68 million.