Ireka said on Friday it had signed a non-binding heads of agreement with Aseana to take part in the corporate exercise which would separate its interests and its concert party Legacy Essence Ltd and other shareholders --which together own about 50% in Aseana -- from those of Aseana.
“Aseana would buy back shares of the participating shareholders on a set date in exchange for an in specie distribution of certain assets owned by Aseana to the participating shareholders, together with the settlement of amount owing between Ireka Group and Aseana.
“Those assets will comprise The RuMa Hotel and Residences in Kuala Lumpur, a portion of the land owned by Aseana in Kota Kinabalu, Sabah and certain residual assets from past developments,” it said.
Ireka said any shares acquired by Aseana would be cancelled. Following the revamp, there would be a complete separation of interests of Aseana from Ireka.
Ireka and Aseana target to sign binding agreements on the demerged by May 21.
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