Benalec terminates land sale pacts

KUALA LUMPUR: Benalec Holdings Bhd has terminated its sale and purchase agreements (SPAs) with Highbond Capital Sdn Bhd and Gigayear Revenue Sdn Bhd for the disposal of eight pieces of land for RM54.3mil cash.

In a filing with Bursa Malaysia, Benalec said its unit Heritage Land Sdn Bhd (HLSB) had issued a notice to the purchasers to terminate the SPAs due to the purchasers’ failure to settle the payment of balance of sale amounting to RM48.8mil on Dec 10.

Upon the termination of the SPAs, Benalec said HLSB was entitled to forfeit the deposits amounting to RM5.43mil paid by the purchasers, or 10% of the sale consideration pursuant to the terms of the SPAs. The purchasers shall have no interest in the said properties and neither party shall have any claim against each other.

It said the board was confident that the termination of the SPAs would not have any material effect on the consolidated earnings per share and net assets per share of the company for the financial year ending June 30, 2014.

Meanwhile, Spektrum Kukuh Sdn Bhd, the State Secretary, Johor (Inc) and 1MY Strategic Oil Terminal Sdn Bhd have mutually agreed to extend the period of validity of the term sheet for an additional duration of six months to June 11, 2014 to finalise the terms and conditions of the SPA.

Spektrum Kukuh, a 70%-owned subsidiary of Tanjung Piai Maritime Industries Sdn Bhd, which in turn is an indirect wholly-owned subsidiary of Benalec Holdings Bhd, had earlier entered into the binding term sheet with the two parties to undertake the reclamation works and sale of about 404.6ha of land off the coast of Tanjung Piai, Johor to construct and operate a crude oil and petroleum storage facility together with a private jetty.

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