DRB-Hicom cancels sale of Singapore’s The Verve shopping mall

The 75%-completed Tekka Mall in Singapore,DRB-HICOM Bhd's first venture into the international property market.

KUALA LUMPUR: DRB-Hicom Bhd has terminated its plan to sell 90% equity interest in Corwin Holding Pte Ltd, which owns the eight-level The Verge shopping mall in Singapore.  

The conglomerate told Bursa Malaysia that its indirect unit Hicom Megah Sdn Bhd as well as the minority shareholders of Corwin who own the remaining 10% had sent a termination notice to the intended purchaser, Evolutyon Real Estate Investment Holding Pte Ltd.

“The termination was due to the inability of the purchaser to fulfill its contractual obligations on the agreed completion date,” DRB-Hicom said.

Hicom Megah and the minority shareholders - Mohamed Mustafa & Samsuddin Co Pte Ltd and B.I. Distributors Pte Ltd - had on Dec 21, 2015, entered into a conditional share sale agreement (SSA) to sell their entire 100% equity interest in Corwin to Evolutyon for SG$317mil (RM937.5mil).

Hicom Megah’s total investment in Corwin from 1997 until 2015 was about RM224.94mil.

“Arising from the termination, neither party shall owe any further obligations to the other in respect of the SSA, save and except as otherwise provided for in the SSA. The vendors are of the view that the purchaser has no legal recourse against the vendors,” said DRB-Hicom.