05 August 2015

Mah Sing’s unit sued over proposed RM359.56 mil Seremban land deal

  05 August 2015


KUALA LUMPUR (Aug 5): Mah Sing Group Bhd ( Financial Dashboard) announced today that seven individuals have initiated a legal suit against its wholly-owned unit Grand Prestige Development Sdn Bhd, over the latter’s proposed acquisition of a piece of prime, freehold tract in Seremban, Negeri Sembilan.

In its filing to Bursa Malaysia, Mah Sing said the seven are Chik Chan Chee @ Cheok Chan Chee, Cheok Choon Yoong, Ling (Liang) Ah Chai, Chang Moy @ Chan Kwai Lan, Wong Ah Kee @ Wong Gin Chin, Koo Seng Hiew and Tiew Choo Seng @ Chang Choo Chew, each being one of the alleged undivided registered proprietors/beneficial owners to the land.

Grand Prestige has been named as one of the defendants, together with the vendors of the said land, said Mah Sing. Grand Prestige was served with a writ and statement of claim made in the High Court of Seremban by the plaintiffs today.

The plaintiffs are seeking, amongst others, a declaration that the sales and purchase agreement (SPA) entered into between Grand Prestige and the vendors is invalid.

The vendors of the land are Poh Yong Cak, Lim Kim Chong, and Sam Chien Kiong @ Sam Choy Cheong. They are the surviving trustees appointed by all the registered and beneficial owners of the land, to be their sole and absolute trustees in respect of the land, according to Mah Sing’s previous filing.

“The company is currently seeking legal advice and will decide on its next course of action,” Mah Sing said in its filing today.

Recall that Grand Prestige had on Aug 11, 2014, entered into an SPA to acquire the piece of land in Mukim Rantau Seremban, measuring 1,051.3 acres, for RM359.56 million cash.

Mah Sing had announced then that it was planning a mixed development with an estimated gross development value (GDV) of RM7.5 billion on the site which would be its maiden foray into Negeri Sembilan.

But on Aug 26 that same year, Mah Sing announced that a land search conducted on Aug 15 on the proposed acquisition, discovered a caveat lodged on Aug 8 — which was not found prior to the signing of the SPA.

It had said then that it would seek clarifications from the vendors and decide on its next course of action.

Mah Sing (fundamental: 2.8; valuation: 2.4) closed unchanged at RM1.52 today, for a market capitalisation of RM3.66 billion. - http://www.theedgemarkets.com/
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