Encorp JV with Sinmah Capital for Bukit Katil development falls through

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PETALING JAYA (Dec 11): Encorp Bhd’s plans to jointly develop its Bukit Katil land in Melaka with Sinmah Capital Bhd has fallen through, said reports yesterday.

Encorp said in a filing with Bursa Malaysia that the conditions precedent (CP) of the joint venture and shareholders agreement (JVSA) dated June 8, 2017 for the proposed joint venture were not fulfilled as at Dec 6, 2018.

“The CP period for the JVSA has lapsed and has not been extended by EBKSB (Encorp Bukit Katil Sdn Bhd) and SDSB (Sinmah Development Sdn Bhd). As such, the JVSA has been rescinded and the parties shall revert to its original position prior to the JVSA,” said Encorp.

According to a report by The Sun daily, the expiry of the JVSA is not expected to have any financial impact on the earnings per share and net assets per share of Encorp.

The parties were supposed to jointly develop 77.9 acres of the land in Bukit Katil for a mixed development comprising a medical college, hospital and residential properties with a GDV of RM865 million.

The English-language daily also reported that the JVSA was entered into between EBKSB, SDSB and Sinmah Development JV Sdn Bhd (SDJSB) in June 2017.

SDSB is a wholly-owned unit of Sinmah Capital while SDJSB is a JV company established to implement the development.

EBKSB and SDSB held 70% and 30% stakes respectively, in SDJSB.

Encorp’s share price fell 2.22% or 1 sen to close at 44 sen yesterday with 31,000 shares traded.