Mixed views on Sunway post-ending of PDC deal

CGS-CIMB Research said that it did not discount that Sunway may bid for the land on its own following the JDA termination.

PETALING JAYA: Analysts are mixed on Penang Development Corp’s (PDC) abrupt decision to abort the joint development agreement (JDA) with Sunway Bhd’s subsidiary, Umech Land Sdn Bhd, for the development of Batu Kawan Industrial Park 2 (BKIP2).

For Maybank Investment Bank (Maybank IB) Research, there is a possibility that Sunway may not be able to recoup all the costs incurred in relation to the land deal, especially the equity injection into Umech Land.