PETALING JAYA: Tropicana Corp Bhd has called off its proposed disposal of 251.59 acres freehold land in Gelang Patah, Johor, for RM569.87 million.
In a filing with Bursa Malaysia today, the property developer said the sale and purchase agreement (SPA) has lapsed on Feb 1 and shall be rendered null and void.
The group said the conditions precedent (CP) have not been fulfilled on Feb 1. Therefore it said the parties have mutually agreed not to extend the first extended CP period and accordingly the timeframe to fulfil such conditions have lapsed.
However, Tropicana said 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.
The agreement was inked in July 2016 by the group’s unit Tropicana Desa Mentari Sdn Bhd with Tiarn Oversea Group Sdn Bhd, in which Tropicana expected to realise a gain on disposal of about RM55.5 million.
Tiarn intended to undertake a two-phase development on the land, with Phase 1 comprising 60 acres and the remainder 191.6 acres constituting the second phase.
The land disposal was expected to complete in the second half of 2022.
Tropicana’s share price was down 1.14% or one sen today to 87 sen with 27,000 shares changing hands.