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of the London Stock Exchange, announces that it has withdrawn a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 The case had been due to start today but has been withdrawn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
nickparis@btinternet.com
Grant
Thornton UK LLP
Philip Secrett, Enzo
Aliaj
+44 (0)207 383 5100
The information contained within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulation (EU) No. 596/2014
which is part of UK law by virtue of the European Union
(withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.