Mega First calls off mixed development project in Perak

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KUALA LUMPUR (Aug 14): Mega First Corp Bhd today announced that two of its units have called off a mixed development project located in Kinta, Perak in joint venture with Menteri Besar Incorporated (Perak) but that an indirect subsidiary has been given the option to secure a significant plot of land for a solar photovoltaic plant.

In a filing with Bursa Malaysia, Mega First said its indirect subsidiary Teratai ANR Sdn Bhd (TASB) and Teratai Kembara Sdn Bhd (TKSB) entered into a “Deed of Revocation” on Aug 13 with Amanjaya Natural Resources Sdn Bhd (ANR), an indirect wholly-owned subsidiary of Menteri Besar Incorporated (Perak), to revoke and rescind the second supplementary agreement and option agreement, both dated May 8, 2018.

Meanwhile, Menteri Besar Incorporated (Perak) had entered into an option agreement with Bayangan Sutera Sdn Bhd (BSSB), an 80%-indirect subsidiary of Mega First, that provides Mega First an option to secure a sizeable piece of land for the development of a solar photovoltaic plant.

Under the option agreement, BSSB is entitled to lease and or to buy the land from Menteri Besar Incorporated (Perak) within the date of the option agreement until Dec 31, 2020.

Mega First also said the “Deed of Revocation” and option agreement will not have any material effect on its net assets per share, earnings per share and gearing for the financial year ending Dec 31, 2019.

On May 8, 2018, TKSB had entered into the second supplementary agreement with Menteri Besar Incorporated (Perak) and ANR to change the terms of the purpose of the joint venture agreement (JVA 2012) from mining activities to mixed development.

TASB, a 70%-owned indirect subsidiary of Mega First and also a joint venture company set up between TKSB and ANR, was granted by Menteri Besar Incorporated (Perak) an irrevocable option for a period of 15 years to either enter into  a development rights agreement and/or enter into a sale and purchase agreement for the acquisition of a 99-year leasehold land (measuring approximately 772 acres located in Mukim Belanja, Daerah Kinta, Perak) or any part thereof.

Shares of Mega First closed unchanged at RM3.65, valuing the group at RM1.47 billion. The counter saw some 710,800 shares traded.