• Under the termination agreement, NMCSB must refund Radium its RM14 million deposit paid earlier, along with interest at a rate of 10% per annum, calculated daily.

KUALA LUMPUR (June 10): Property developer Radium Development Bhd (KL:RADIUM) has decided to cancel its plan to jointly develop a plot of land in Kuala Lumpur with landowner N&M Cahaya Sdn Bhd due to an ongoing litigation involving the land.

In a bourse filing Tuesday, Radium said it has mutually agreed with N&M Cahaya to terminate a letter of intent that Radium issued in February 2023 to take up a 75% stake in N&M Cahaya by subscribing for 300,000 new N&M Cahaya shares to take part in the land's development. At the time, the land, measuring 40,467 sq m and located in Mukim Petaling, had an estimated value of RM70 million.

The litigation was discovered after Radium completed due diligence on N&M Cahaya in 2024. Both parties subsequently agreed to extend the timeline by 18 months, until Aug 6, 2025, for NMCSB to resolve the dispute. Despite the extension, Radium noted that uncertainty continued to persist, which prompted both parties to terminate the LOI.

Under the termination agreement, NMCSB must refund Radium its RM14 million deposit paid earlier, along with interest at a rate of 10% per annum, calculated daily. But as a gesture of goodwill, Radium has agreed to waive the interest — providing the full deposit refund be made within seven days from the termination date and that Radium gets the right of first refusal to the land if the legal dispute is resolved in the future.

“The board is of the view that the mutual termination is in the best interest of the company and will enable Radium to reallocate its resources to other strategic initiatives,” Radium said, adding the termination won't have any material impact on its earnings, net assets or gearing for the financial year ending Dec 31, 2025.

Radium shares closed 0.5 sen or 1.01% lower at 49 sen on Tuesday, giving the group a market capitalisation of RM1.7 billion.

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