Majuperak sells back 51% stake in property developer after project fails to achieve sales target

• Majuperak is selling back the stake in Nexusbase Development Sdn Bhd to the vendor at the original sum of RM12.5 million, the Perak-based group said in a filing with Bursa Malaysia on Wednesday (Aug 9).

KUALA LUMPUR (Aug 9): Thirty months after acquiring a 51% stake in the developer of  Nexus Residence in USJ Subang West, Majuperak Holdings Bhd has decided to sell back the stake after the vendor failed to achieve the required 50% sale of the units in the project.

Majuperak is selling back the stake in Nexusbase Development Sdn Bhd to the vendor at the original sum of RM12.5 million, the Perak-based group said in a filing with Bursa Malaysia on Wednesday (Aug 9).

"As the vendor has failed to achieve the required 50% sales of the units, this property development project’s impact to (Majuperak's) regularisation plan is untenable, resulting in Majuperak running out of options, and, in the best interest of the company, opting to exercise its right for the vendor and its major shareholder to repurchase the shares acquired," the group said.

Majuperak had previously said that the acquisition of the stake in Nexusbase provided the opportunity for the group to earn future income streams arising from the project carried out by Nexusbase, and consolidate its business in the sector and form part of the regularisation plan to regularise its financial condition and turn around the group’s financials to a stronger position.

Majuperak said it has given notice of the invocation of share repurchase to the vendor, Sloane Infinity Asia Pacific Sdn Bhd and Sloane’s shareholder Datuk Lee Seng Khoon.

Under the notice, Majuperak requested reimbursement of RM6.5 million in cash previously paid to the vendor and cancellation and return of the promissory note worth RM6 million.

The invocation of the share repurchase is expected to be completed by the fourth quarter of 2023, said Majuperak.

Nexus Residence has a gross development value of RM121.68 million, with construction commencing in the third quarter of last year and expected to be completed in the third quarter of 2025.

Majuperak's share price closed down 2.5 sen or 7.46% at 31 sen, giving the group a market capitalisation of RM88 million.

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