TM, UEM shares fall on project cancellation

PETALING JAYA: The shares of Telekom Malaysia Bhd (TM) and UEM Sunrise Bhd (UEMS) were lower this morning after the two firms decided to cancel the proposed development of a high-rise project in Kuala Lumpur.
At 10.44am, TM’s share price fell 0.56% or 2 sen to RM3.57 with 152,000 shares traded while UEMS’ share price fell 0.54% or half sen to 92 sen with 167,500 shares traded.
Last Friday, TM’s share price fell 0.28% or 1 sen to close at RM3.59 with 3.98 million shares traded while UEMS' share price remain unchanged at 92.5 sen with 682,500 shares traded.
In a filing with Bursa Malaysia, TM said the parties have mutually agreed for the joint land development agreement (JLDA) to be rescinded upon expiry of the extension of the conditional period on Sunday.
UEMS said the JLDA was rescinded subsequent to the non-fulfilment of the conditions precedent. Both parties have also agreed to refund the deposit to UEMS' indirect wholly owned subsidiary Sunrise Quality Sdn Bhd.
Under the JLDA, the two firms had agreed to develop a high-rise mixed development comprising serviced apartments and retail elements on TM’s 1.69-acre land located along Jalan Raja Chulan.
On May 28, 2018, TM said the parties mutually agreed to extend the conditional period of the JLDA for a period of three months until Aug 26, 2018.