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KUALA LUMPUR (March 8): JAKS Resources Bhd (pictured) has agreed to complete Tower A of the Pacific Star project in Petaling Jaya by June 30 as demanded by Star Media Group Bhd.
In a filing with Bursa Malaysia, JAKS said it wrote to Star on Tuesday saying it “shall endeavour” to complete the building by that date as sought by Star in a notice of demand dated Feb 28.
Tower A is one of two office towers in the Pacific Star project, which also features three residential blocks and related developments with a gross development value of RM1.1 billion.
JAKS’ 51%-owned subsidiary JAKS Island Circle Sdn Bhd (JIC) was supposed to deliver Tower A to Star, alongside RM135 million as payment from JAKS to acquire from Star the land where Pacific Star is planned.
In a separate statement yesterday, JAKS said the High Court has granted an extension to the interim stay to restrain two banks from releasing a total of RM50 million to Star as bank guarantee for the delay in Tower A’s completion.
The guarantee comprises RM25 million from each of the two banks. One expired on Feb 15 and the other will expire on April 15.
The court, JAKS added, has fixed the hearing of the two injunctions — which will see Star and JIC present their arguments — on March 20. JAKS said yesterday that JIC is seeking an out of court settlement of the issue by bringing the dispute to arbitration.
JAKS shares dropped seven sen or 4.32% to RM1.55 yesterday, with a market capitalisation of RM767.21 million.
This article first appeared in The Edge Financial Daily, on March 8, 2018.
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