KUALA LUMPUR (Oct 20): KPS Consortium Bhd has agreed to receive RM12.65 million as the full and final settlement of a claim from an aborted land deal with Shanghai City Sdn Bhd back in 2012.

In a filing with Bursa Malaysia today, KPS Consortium said the dispute has been amicably settled out of court, yesterday (Oct 19).

Shanghai City has agreed to pay RM12.65 million to KPS Consortium’s wholly-owned subsidiary, KPS Plywood Sdn Bhd, as full and final settlement for the said specific performance claim for the revocation and rescission of the sale and purchase agreement (SPA) dated July 6, 2012.

“Total sum received in respect of the transaction, total up to RM19.45 million,” it added.

However, the settlement is not expected to have any material financial effect on KPS Consortium's earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2015.

To recap, KPS Plywood had on July 6, 2012 entered into an SPA with Shanghai City to acquire nine parcels of land, together with a seven-and-a-half-storey building at Jalan Walter Grenier, Kuala Lumpur, for RM23.38 million cash.

On Nov 29, 2013, KPS Plywood had entered into a deed of settlement, rescission and revocation with Shanghai City, as the latter requested to rescind and revoke the sale and purchase of the property and the agreement. Shanghai City agreed to pay KPS Plywood the sum of RM2.38 million, as agreed liquidated damages.

KPS Plywood has also instructed its solicitors to commence legal proceedings against Shanghai City for the necessary reliefs and other claims of damages and losses, as a result of the latter’s default or breach.

KPS Consortium's shares closed 1 sen or 2.22% lower at 44 sen today, for a market capitalisation of RM65.04 million.

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