MSM cancels Chuping land sale to F&N Holdings

KUALA LUMPUR: MSM Malaysia Holdings has terminated a deal to sell its sugar plantation in Chuping, Perlis to a unit of Fraser & Neave Holdings Bhd (F&N Holdings).

This was after F&N Holdings had failed to obtain the approval from the Ministry of Economic Affairs, formerly known as the Economic Planning Unit (EPU), to purchase the land.

"In view that the purchaser has yet to obtain the EPU approval on or before the expiry of the extended conditional period on April 8, the vendor has exercised its rights to rescind the agreement," MSM said in a filing with Bursa Malaysia today.

MSM, in October last year, had announced that wholly owned MSM Perlis Sdn Bhd had entered into a deal with F&N Agrivalley Sdn Bhd for the disposal of approximately 4,453.92 hectares of land in Chuping for RM156mil.

"The refund of the deposit which the purchaser has previously paid will accordingly be effected in accordance with the agreement," MSM said.

Meanwhile, F&N Holdings said it was informed by MSM about its decision not to extend the deadline on April 6 and April 9.

The beverage maker noted that the April 8 deadline was within the current movement control order (MCO) period.

"In light of these developments, F&N Holdings and F&N AgriValley are considering its options. The Board will make further announcement in this regard in due time," it said in a separate filing with Bursa Malaysia today.

F&N Holdings was previously reported to be planning to invest RM650mil for the purpose of setting up a dairy farm in Chuping.