KUALA LUMPUR (Feb 7): Tropicana Corporation Bhd is discontinuing its proposed disposal of 251.58 acres of freehold land in Johor Bahru district for RM569.87 million.

The conditions precedent to the sales and purchase agreement (SPA) had not been fulfilled on Feb 1, the group said in a filing with Bursa Malaysia today.

It said the vendor — Tropicana’s indirect wholly-owned unit Desa Mentari Sdn Bhd, and the purchaser — Tiarn Oversea Group Sdn Bhd, have mutually agreed not to extend the conditions' precedent period.

“Accordingly, the timeframe to fulfil such conditions have lapsed. As such, the SPA has lapsed on Feb 1, 2019 and shall be rendered null and void,” it added.

The SPA was signed on July 1, 2016, with the aim of completing the disposal by 2022.

But in December 2017, both parties agreed to extend the closing period for the deal by a month to Jan 30, 2018, after which on Feb 2, 2018, a supplemental agreement was signed that altered the details of the SPA.

Tropicana then announced on July 30, 2018 that it had agreed to extend the closing period for another three months to Oct 31, 2018, with the provision for an automatic extension for another three months to Feb 1, 2019, if the conditions were not met.

“The expiry of the SPA is not expected to have material financial impact on the earnings per share and net assets per share of the company for the financial year ending Dec 31, 2019,” the group said.

Shares of Tropicana fell a sen or 1.14% to 87 sen today, giving it a market capitalisation of RM1.29 billion.