In a filing with Bursa Malaysia on Tuesday, the property developer and sheet metal fabricator said its 60%-owned subsidiary and CZ (previously Consortium Zenith BUCG Sdn Bhd) had mutually terminated their sale and purchase agreement (SPA) for the 4.4252-acre (1.79ha) land in Section 1, Tanjung Pinang.
They also agreed to release and discharge each other from the rights, liabilities and obligation contained in the SPA subject to the terms and conditions in the termination agreement.
“The parties have mutually agreed to terminate the SPA because the land alienated is approximately 2 acres only which is a substantial reduction in the size of the subject land referred to in the SPA,” Ewein said.
The announcement did not explain why the size of the alienated land had been reduced.
Ewein said within three months, CZ, which owns the remaining 40% stake in Ewein Zenith II, would refund to Ewein Zenith II the deposit of RM16.2mil with interest at a mutually-agreed rate.
It was reported that CZ would receive a total of 44.5ha of freehold reclaimed land in Tanjung Pinang from the state government for undertaking the Penang mega project.
Ewein Zenith II signed the agreement to buy the 1.79ha parcel from CZ for RM162mil in December 2015.
The following month (January 2016), Ewein’s other 60%-owned property development subsidiary Ewein Zenith Sdn Bhd inked a memorandum of agreement with CZ to grant Ewein Zenith the right to buy three parcels of land totalling 50 acres (20.23ha) at Tanjung Pinang at RM1,300 per sq ft.
The 50-acre land was earmarked for the development of the Wellness City of Dreams project, which includes a wellness resort and wellness apartments, among others.
The parties agreed for the said land to be further divided into ten parcels of land and that they would enter a separate SPA for each parcel..
Ewein noted that it had aggregated the proposal together with the proposed land acquisition inked in December 2015 and treated them as if they were one transaction, as both transactions were entered into with the same party within a period of 12 months.
In a separate announcement to the stock exchange on Tuesday, Ewein said CZ chairman Datuk Zarul Ahmad Mohd Zulkifli had resigned as a director of its wholly owned subsidiary Ewein Land Sdn Bhd with effect from Aug 22. Ewein Land directly holds the 60% stakes in Ewein Zenith and Ewein Zenith II.
Zarul is a common director of Ewein Zenith II and CZ, and is deemed interested in Zenith Construction Sdn Bhd, the holding company of CZ.