Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on August 15, 2019

KUALA LUMPUR: Mega First Corp Bhd yesterday announced it has called off a mixed development project in Kinta, Perak in a joint venture with Menteri Besar Incorporated (Perak) [Perak MB Inc]but that its 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 Tuesday with Amanjaya Natural Resources Sdn Bhd (ANR), an indirect wholly-owned subsidiary of Perak MB Inc, to revoke and rescind the second supplementary agreement and option agreement, both dated May 8, 2018.

Meanwhile, Perak MB Inc has 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 Perak MB Inc 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 asset per share, earnings per share and gearing for the financial year ending Dec 31, 2019.

On May 8, 2018, TKSB entered into the second supplementary agreement with Perak MB Inc 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 Perak MB Inc an irrevocable option for 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 [312.42ha] located in Mukim Belanja, Daerah Kinta, Perak) or any part thereof.

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