KUALA LUMPUR (April 20): A two-year legal suit between Mah Sing Group Bhd and several vendors in Penang over the aborted acquisition of a RM42.6 million land in Jawi by Mah Sing's unit, has been resolved out of court, with Mah Sing getting back half of paid initial deposit for the deal.

“Pursuant to discussions at the High Court and on the advice of our lawyers conducting the case to reach a settlement, Nature Legend and the vendors have amicably agreed to settle the case,” said Mah Sing in a bourse filing today.

As such, Mah Sing said its wholly-owned unit, Nature Legend Development Sdn Bhd, have been refunded RM2.13 million, representing 50% of the deposit paid for the land deal.

“The balance of 50% shall be retained by the vendors. The retention will not have a material impact on the net assets or earnings of the Mah Sing group for the financial year ending Dec 31, 2016,” it said.

On Dec 10, 2013, Nature Legend entered into four separate sale and purchase agreements (SPAs) with four vendors, for 20 pieces of land measuring 30.9 hectares.

The four vendors comprise Hong Lee Realty Sdn Bhd (vendor one), Yenher Agro-Products Sdn Bhd (vendor two), individuals Bor Guan Chye, Bor Chye Teik, Bor Mui Teik and Bor Chai Heng (vendor three); and Tan Sook Hua (vendor four).

In the announcement then, Mah Sing had planned a development project with a gross development value of RM400 million, having an expected development timeframe of three to four years.

However on June 20, 2014, Mah Sing announced that an alleged breach of obligation by Yenher led to the termination of the SPAs, which led to the civil suit between the parties.

Mah Sing climbed five sen or 3.33% to close at RM1.55 today, for a market capitalisation of RM3.7 billion.