Ireka to exit RuMa project, pare stake in Aseana to settle 2009 JV dispute

• The shares represent a 19.55% stake in Aseana, and will leave Ireka Corp with 3.52% in the London-listed property player, from 23.07% currently.

KUALA LUMPUR (Jan 30): Ireka Corp Bhd is transferring its 30% stake in two associates linked to The RuMa Hotel and Residences to joint venture partner Aseana Properties Ltd, as part of a settlement to a suit filed by Aseana Properties’ subsidiary last October.

Ireka will also transfer back its 19.55% stake in Aseana as part of the settlement to the RM109.8 million suit filed by ASPL M9 Ltd, in relation to a JV agreement signed between Ireka, ASPL and Urban DNA Sdn Bhd for the RuMa project development back in 2009.

Together, the settlement is expected to result in a net financial impact of RM15.2 million on the local-listed property player.

The settlement will see Ireka transferring to Aseana its entire 30% stake in The RuMa Hotel KL Sdn Bhd and Urban DNA. Urban DNA is the RuMa project developer.

Ireka received stakes in the RuMa project from Aseana in 2020 as part of a demerger exercise.

In light of the settlement, Ireka Corp will also transfer back 38.84 million shares in Aseana under a share buyback agreement, conditional upon approval of Aseana’s shareholders.

The shares represent a 19.55% stake in Aseana, and will leave Ireka Corp with 3.52% in the London-listed property player, from 23.07% currently.

“Based on Aseana’s current share price of US$0.085 per share and the prevailing current foreign exchange rate of RM4.733 against the US dollar, the settlement would result in the write-off of other investment, approximately RM15.6 million to be recognised immediately,” Ireka said.

This is offset by a reversal of Ireka Corp’s share of losses in Urban DNA and The RuMa Hotel KL of RM405,000, resulting in a net financial impact of RM15.2 million, it added.

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