29 January 2024
Aseana Properties Limited
("ASEANA", the "Company" or the "Group")
Legal Action update
Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia listed on the Main Market of the London Stock Exchange, announces that it has withdrawn a legal action that it was taking in the Malaysian Courts against Ireka Corporation Berhad ("ICB") the parent company of its former development manager, for non-payment of various debts owed to the Group. The case had been due to start today but has been withdrawn as ICB and the Company have signed a Settlement Agreement (the "Agreement") whereby ICB will transfer 38,837,504 shares in the Company (representing approximately 19.55% of the issued share capital excluding treasury shares) plus its 30% shareholdings in the two joint venture companies that own The RuMa Hotel & Residences in Kuala Lumpur to the Company (collectively the "Settlement"). The Company owns the remaining 70% of these joint venture companies.
The impact of the Settlement would be to decrease the Group's Net Asset Value from US$69.1 million reported in the unaudited half year results as at 30 June 2023, to a pro forma unaudited Net Asset Value of US$63.4 million as at the same date. It is anticipated that the 38,837,504 shares received pursuant to the Agreement will be put into Treasury and as a consequence the Net Asset Value per share would increase from US$0.35 as at 30 June 2023 to a pro forma Net Asset Value per share of approximately US$0.40.
The Agreement is conditional on the Company obtaining shareholder approval for the buyback of the 38,837,504 shares held by ICB in the Company at an Extraordinary General Meeting which will be called shortly, and on ICB obtaining approval for the Settlement in the Winding Up Court in Malaysia within 30 days of signing of the Agreement. The Settlement will constitute full and final settlement of the debts due by ICB to the Company. Should the conditions of the Agreement not be satisfied, the Company's directors are uncertain as to whether ICB would be able to satisfy its outstanding debts to the Group due to the fact that ICB is classified as a financially distressed company under Practice Note 17 (PN 17) status in accordance with the listing regulations of Bursa Malaysia.
Work continues on the sale of the Sandakan hotel asset and the adjacent Harbour Mall Sandakan and to repay the guarantor banks who now hold the Medium Term Notes. The purchaser of the 32 unsold residences at The RuMa Hotel & Residences in Kuala Lumpur has been unable to finance this acquisition and the contract has therefore been cancelled and the 10% deposit has been forfeited. Due to the delay in completing the sales of these key assets, the Company is seeking to raise short term finance of up to US$2 million to provide working capital until the sales are completed.
For further information:
Aseana Properties Limited
Nick, Paris, Non-Executive Chairman +44 (0)7738 470550
Grant Thornton UK LLP
Philip Secrett, Enzo Aliaj +44 (0)207 383 5100
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