Country Heights fails to complete RM44.1m acquisition of office tower

• “Maybank has rejected CHSR’s request for an extension of time to make the balance consideration payment, and the company is unable to comply with Chapter 10 of the Listing Requirements on related party transactions by the balance consideration payment deadline of March 15, 2023."

KUALA LUMPUR (March 20): Country Heights Holdings Bhd has failed to complete the acquisition of a 10-storey office tower, The Heritage Tower @ Mines Wellness City, for RM44.1 million after its unit failed to pay 90% of the purchase consideration on time.

In a bourse filing on Friday (March 17), Country Heights said the group’s unit Country Heights Sea Resort Sdn Bhd (CHSR) was unable to proceed with the completion of the acquisition after it failed to pay the outstanding balance of RM39.69 million.

“Maybank has rejected CHSR’s request for an extension of time to make the balance consideration payment, and the company is unable to comply with Chapter 10 of the Listing Requirements on related party transactions by the balance consideration payment deadline of March 15, 2023.

“Therefore, Country Heights and CHSR are exploring all available legal options in response to the situation,” it added.

In November last year, CHSR entered into a memorandum of contract with Messrs Ng Chan Mau & Co Sdn Bhd to acquire the office tower after its bid succeeded at a public auction. Maybank is the appointed licensed auctioneer of the public auction.

As per the salient terms of the memorandum, the RM39.69 million or 90% of the purchase price was to be paid within 120 days from the auction sale.

It said the acquisition is in line with the group’s corporate exercise and transformation plan to create a larger capitalisation, better value, and greater economies of scale for the group.

It had also noted that the purchase of the office tower is via a public auction and not a related party transaction.