Hextar Technologies, SWS Capital mutually agree to terminate land deal

• The mutual termination was due to the inability of SWS Capital Bhd's wholly-owned unit, SWS In Medics Sdn Bhd’s (SIMSB), to fulfill the conditions precedent to obtain a loan from the financier to acquire the properties.

KUALA LUMPUR (Aug 17): Hextar Technologies Bhd (HexTech) has agreed to terminate the deal to sell two parcels of land measuring a total of 235,213 sq ft, located in Pasir Gudang and Klang, to SWS Capital Bhd for RM23.66 million.

The mutual termination was due to the inability of SWS Capital Bhd's wholly-owned unit, SWS In Medics Sdn Bhd’s (SIMSB), to fulfill the conditions precedent to obtain a loan from the financier to acquire the properties.

HexTech had initially entered into two sale and purchase agreements involving its wholly-owned units, Pengangkutan Sekata Sdn Bhd and Sin Hiap Hoe Trading & Transport Sdn Bhd, with SIMSB in late June. These agreements were related to the sale of the two parcels of land in Pasir Gudang and Klang.

Pursuant to the termination, deposits amounting to RM1.18 million paid by SIMSB to the stakeholder, will be refunded to the company, said HexTech in a bourse filing on Wednesday (Aug 16), adding that it will endeavour to look for potential buyers for the properties.

Datuk Eddie Ong Choo Meng holds 54.77% stake in HexTech via Hextar Tech Sdn Bhd. He also holds a 13.07% stake in SWS Capital.

In a separate filing, SWS Capital said that in view of the termination of the deal, the company is not required to raise the minimum gross proceeds of RM180 million to finance the acquisitions and proposed joint development.

"Therefore the proposed rights issue shall be aborted. In view of the inter-conditionality of the proposals, the board has resolved to abort and will not proceed with the proposals," it added.

Shares of Hextech finished two sen or 0.07% higher at RM28.44, giving the company a market capitalisation of RM3.66 billion. SWS Capital dropped six sen or 14.81% to 34.5 sen, valuing the group at RM93.62 million.

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