PETALING JAYA: Property developer Malaysia Pacific Corp Bhd (MPCorp) and its unit Oriental Pearl City Properties Sdn Bhd have been ordered by the Kuala Lumpur High Court to pay some RM113mil to AmanahRaya Development Sdn Bhd (ADSB) which had brought a suit against the former.
Based on MPCorp’s latest annual report, ADSB had filed an action against both firms on Sept 27, 2012, claiming RM113mil allegedly owing to both firms, as a result of a put option exercised by ADSB as per a joint-venture agreement between ADSB and Oriental and a deed of undertaking between ADSB and MPCorp.
To recap, in August 2008, a joint-venture agreement was entered into between ADSB and Oriental, whereby Oriental had granted a put option to ADSB to exercise its rights to sell its entire investment of 22% in a development known as the LakeHill Resort Development to MPCorp on or before the expiry of the option period.
ADSB had given notice that it was exercising the put option granted to it and that Oriental was to purchase ADSB’s participation in the joint-venture project. ADSB had a 22% stake in the development in Johor, and Oriental, the remaining 78%.
No details were given as to why ADSB wanted to sever ties.
Notably, the amount of RM113mil is higher than the firm’s market capitalisation, which stands at slightly more than RM80mil.