A scale model of the Bandar Malaysia project. (Photo by Suhaimi Yusuf/The Edge)
KUALA LUMPUR (July 14): The Ministry of Finance and IWH CREC Sdn Bhd have mutually agreed to terminate the deal for the latter to buy a 60% stake in Bandar Malaysia project located in the former air force base near Sungai Besi for RM7.4 billion.
The termination came after both parties agreed not to extend the conditions precedent period of the agreement, according to the joint statement issued by the Ministry of Finance’s wholly-owned TRX City Sdn Bhd and IWC-CREC.
It is understood that IWH-CREC will get a refund of RM1.54 billion cash which it had paid to the Ministry of Finance on a staggered basis.
The agreement lapsed on May 6 this year, as the respective parties failed to meet the conditions precedent within the stipulated period.
Both parties have not been able to mutually agree to the terms of the extension of the conditions precedent period, said a joint statement.
TRX City inked the restated and amended share sale agreement with IWH-CREC in December 2019 for the equity sale in Bandar Malaysia Sdn Bhd.
IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd, a unit of China Railway Group Ltd.
More to come
