Enra Group calls off stake sale in Landmark Zone; to renegotiate

KUALA LUMPUR (May 10): Enra Group Bhd [formerly Perduren (M) Bhd] said it has mutually agreed to terminate a share sale agreement (SSA) with Meridian Hectares Sdn Bhd to dispose of a 30% stake in property developer Landmark Zone Sdn Bhd to the latter for RM13.9 million cash.

In a filing with Bursa Malaysia today, Enra said this is to enable the two companies to renegotiate the terms and conditions of a proposed disposal that will explore the possibility of disposing a higher equity interest in Landmark Zone held by Enra to Meridian Hectares.

As such, Enra said it will refund Meridian Hectares, RM1.39 million cash or 10% of the disposal consideration, being the deposit and part payment of the aborted deal.

As at March 17, Enra has a 70% stake in Landmark Zone, while Meridian Hectares holds the remaining 30%. Enra had on June 1 last year, disposed of the 30% stake in Landmark Zone to Meridian Hectares for RM8.3 million cash.

Landmark Zone is currently undertaking a joint venture with Koperasi Shamelin Bhd to develop a RM21.35 million mixed project called "Shamelin Star" in Taman Shamelin Perkasa here. The project features two blocks of 29-storey serviced apartments with 630 units of apartments, 32 units of retail lots, car park and a club house.

Development on the project started in July 2013 and is expected to be completed by December this year.

To recap, Enra had on March 18 entered into a conditional SSA with Meridian Hectares to dispose of 2.4 million shares or a 30% stake in Landmark Zone to the latter for RM13.9 million.

Enra had said then that the proposed disposal will enable the group to reduce its exposure to the challenges of selling the remaining unsold units of Shamelin Star, in view of the weak outlook of the current property market in Malaysia.

Enra shares were untraded in the morning session. The stock last closed at RM2.11 on May 3, 2016, for a market capitalisation of RM284.68 million. -- theedgemarkets.com

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