UOA Development terminates care services joint venture at Komune Living and Wellness Centre in Cheras

PETALING JAYA (April 20): UOA Development Bhd (UOA Development) has mutually terminated a shareholders' agreement entered into with Care Concierge Care Centre Sdn Bhd (CCCC) for a managed care services venture at its Komune Living and Wellness Centre commercial building in Cheras, with effect from last Friday (April 17).

The shareholders' agreement was originally entered into on Sept 9, 2021 between UOA Development's two subsidiaries — Federaya Development Sdn Bhd (Federaya) and Regenta Development Sdn Bhd (Regenta) — and CCCC, to carry on and participate in the provision of independent home living, managed home care services and caregiving services for people who require assistance in their daily lives, and to develop and manage care facilities at Komune Living and Wellness Centre. 

The building is owned by UOA Golden Pines Sdn Bhd, a wholly-owned subsidiary of UOA Development.

In a filing with Bursa Malaysia, UOA Development said the termination was due to a divergence of business views between the parties.

Upon termination, the 186,667 ordinary shares in Komune Care Centre Sdn Bhd — the joint venture entity — held by CCCC will be transferred to Federaya for a consideration of RM500,000. Following the transfer, Komune Care Centre Sdn Bhd will become a wholly-owned subsidiary of UOA Development via its two subsidiaries.

UOA Development said the termination will not have any material financial impact on the group's earnings, gearing or net assets, and will have no effect on the share capital of UOA Development or its substantial shareholders.

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