Aspen terminates agreement to purchase land in Penang with Geo Valley

Tan Nai Lun

Published Wed, Dec 29, 2021 · 01:45 PM

ASPEN Park Hills (APH), the indirect subsidiary of Malaysian developer and glove maker Aspen (Group) Holdings, has terminated its conditional share and purchase agreement with Geo Valley to purchase land in Penang, Malaysia.

This was due to non-fulfillment of the conditions precedent, Aspen said in a bourse filing on Wednesday (Dec 29).

In 2019, the companies entered into an agreement to acquire freehold land in Paya Terubong, Penang for 165 million ringgit (S$54 million). Geo Valley was also investing 25 per cent equity in Aspen Park Hills.

Under the rescission and settlement agreement, Geo Valley will refund to APH a deposit and further payment amounting to 24.4 million ringgit. Geo Valley's nominees will also transfer its 25 per cent equity in APH to Aspen Vision Homes, which is Aspen's indirect subsidiary and the holding company of APH.

Aspen does not expect the termination to have any material adverse impact on the company and group's consolidated net tangible assets per share and earnings per share for the financial year ending Jun 30, 2022.

In 2019, Aspen said it was intending to develop a mixed-use development comprising residential towers, service apartments, retail lots and a community centre in the area. The project was to be the company's first joint venture with property developer Oxley Holdings.