KUALA LUMPUR (Mar 13): Malton Bhd's planned RM83.67 million Shah Alam land sale has been terminated as the company was unable to fulfill all the conditions under the transaction by the agreed deadline.

Property developer Malton (fundamental: 1.1; valuation: 1.8) told Bursa Malaysia today buyer Hedgeford Ventures Sdn Bhd (HVSB) had rejected Malton's request for more time to comply with the conditions under the sale and purchase agreement (SPA). The 4.8ha (12 acre) leasehold industrial tract is located within Kampung Melayu Subang in Shah Alam, Selangor.

"As the conditions precedent under the SPA (including the requirement to obtain the consent from the appropriate authority for the transfer of the Land to HVSB) have not been fully complied with, the SPA shall be deemed lapsed.

"Both RSSB (Malton's wholly-owned unit Rentak Sejati Sdn Bhd) and HVSB are required to discharge their obligations as set out in the SPA and thereafter, the SPA shall be deemed to be terminated and shall be null and void and be of no legal effect and neither RSSB nor HVSB shall have any claims whatsoever against the other in respect of or arising from the SPA," Malton said.

Earlier, RSSB and HVSB had signed the SPA in May 2014. Malton said the sale proceeds would be used as working capital for its property projects.
 
Malton had bought the land in June 2003 for RM15.68 million.

Today, Malton's share trade has been suspended between 9am and 10am in conjunction with the SPA termination announcement. At Malton shares' latest closing price of 86 sen, the firm had a market capitalisation of RM385.6 million.

This compares to Malton's latest reported book value of RM1.57 a share.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)