Gromutual rescinds RM19.03 million land deal

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KUALA LUMPUR (July 1): Property developer Gromutual Bhd today announced that it is calling off a RM19.03 million land acquisition from Berjaya Land Development Sdn Bhd, a wholly-owned unit of Berjaya Land Bhd.

In a filing with Bursa Malaysia, Gromutual (fundamental: 2.0; valuation: 3.0) said its wholly-owned subsidiary Rainbow Entity Sdn Bhd (RESB) is entering into a “Deed of Mutual Revocation and Rescission on Sale and Purchase Agreement” with Berjaya Land Development.

Both parties have mutually agreed to rescind and revoke the sale and purchase agreement (SPA) entered into earlier this year.

No reason was provided for the revocation and rescission of the SPA.

To recap, RESB had on Mar 16 entered into the said SPA to acquire two pieces of freehold land in Mukim of Plentong, Johor Bahru, which have a collective acreage of 21.51 acres.

Gromutual said the acquisition was mainly to replenish its land bank.

The counter fell half sen or 1.05% to 47 sen per share today, for a market capitalisation of RM178.41 million.

(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.)