Yong Tai seeks fourth extension for RM160 mil Courtyard by Marriott Melaka sale circular

KUALA LUMPUR (June 6): Property developer Yong Tai Bhd (KL:YONGTAI) has applied for a fourth six-month extension to submit its draft circular for the proposed RM160 million sale of Courtyard by Marriott Melaka, nearly two years after the deal was announced.

The group said it had not yet submitted the draft circular to shareholders as of June 5, in line with listing requirements, ahead of the June 27 deadline. It has now requested a further six-month extension until Dec 26, according to a Bursa Malaysia filing on Friday.

The company had previously received three extensions from Bursa Securities — on Oct 4, 2024, March 21, 2025, and Dec 19, 2025 — allowing time until June 27, 2026, to submit the draft circular for the proposed disposal.

Yong Tai’s proposed sale of Courtyard by Marriot Melaka was first announced in July 2024, when Yong Tai’s wholly owned subsidiary, Apple 99 Development Sdn Bhd, entered into a sale and purchase agreement with Southern Envoy Sdn Bhd. 

The deal involves the sale of the 248-room, five-star hotel. The hotel had been operating for just over a year at the time the sale was proposed. Proceeds from the sale were to be used mainly to reduce the group's borrowings, with the balance earmarked for working capital.

In August of the same year, however the transaction encountered a setback when construction firm Kerjaya Prospek Group Bhd (KL:KERJAYA), through its wholly owned subsidiary, filed a writ of summons and a statement of claim against Apple 99 Development Sdn Bhd, initiating legal action over an alleged failure to settle an outstanding residual contract sum of RM105.14 million.

On Oct 17, 2025, the High Court in Shah Alam ruled in favour of Apple 99 in two related applications. The court allowed Apple 99’s bid to set aside the adjudication decision dated May 9, 2025, with costs of RM15,000 payable by Kerjaya Prospek. It also dismissed Kerjaya Prospek’s application to enforce the same adjudication decision, ordering Kerjaya Prospek to pay RM5,000 in costs.

The directors of Apple 99 said Kerjaya Prospek’s claims are not expected to have a material financial impact on the group, as the amount owed has already been provided for in its financial statements.

Based on legal advice, the directors believe Apple 99 is likely to succeed in defending Kerjaya Prospek’s claim for specific performance. They argue that a supplementary agreement overrides the earlier settlement agreement, and that Kerjaya Prospek’s demand notice is invalid.

The company returned to a loss in the financial year 2025 (FY2025) after posting a profit in FY2024. In the third quarter ended March 31, 2026, it reduced its net loss to RM2.1 million from RM4.04 million a year earlier, even though revenue fell 18% to RM8.7 million from RM10.61 million.

As at March 31, 2026, the company had a net debt position of RM202.81 million, with total borrowings of RM210.84 million exceeding cash and bank balances of RM8.03 million.

As at market close on Friday, Yong Tai shares were not traded. It closed unchanged on June 4 at 12 sen, valuing the company at RM65.6 million.

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