MPCorp inks MoU with S’pore firm to sell assets for RM250 mil

KUALA LUMPUR (July 29): Practice Note 17 (PN17) company Malaysian Pacific Corp Bhd (MPCorp) has inked a memorandum of understanding (MoU) with a Singapore company Terra Pontus Pte Ltd for the proposed disposal of a part of Wisma MPL for RM250 million.

In a filing with Bursa Malaysia, MPCorp said it has sold some units of the 23-storey complex and save for those units, Wisma MPL will be sold to Terra Pontus.

Wisma MPL comprises a 19-storey office tower, a four-storey retail podium block and a two-level basement car park. It is located along the southern side of Jalan Raja Chulan, within the Kuala Lumpur golden triangle commercial area, the filing stated.

Terra Pontus is an investment holding company incorporated in Singapore, which is principally involved in property investment and private equity.

MPCorp said the MoU shall remain valid for two months, except as otherwise mutually agreed in writing by the parties or upon execution of the sale and purchase agreement (SPA).

As such, both MPCorp and Terra Pontus have agreed to negotiate the terms of a definitive SPA for the proposed disposal and will sign the SPA within two months from the date of the MoU.

MPCorp said the price tag of the property was arrived at after arm’s length negotiations, on a willing-buyer willing-seller basis. 

The company said the disposal shall be free from encumbrances except the land, being subject to all restrictions in interest and conditions of title. MPCorp said Terra Pontus will pay RM5 million as “earnest money” within a fortnight of the signing of the MoU.

In a separate filing, MPCorp said it has submitted an application for extension of time up to Feb 28, 2017 to make a requisite announcement and up to April 15, 2017 to submit its regularisation plan to Bursa Malaysia.

Bursa Malaysia had previously extended MPCorp’s duration to submit its regularisation plan to July 29, 2016.

MPCorp fell into PN17 status on Dec 1, 2014 after an external auditor expressed a disclaimer opinion in its audited financial statements for the financial year ended June 30, 2014.

The auditor was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

MPCorp shares closed 2.5 sen or 14.29% higher at 20 sen yesterday, with a market capitalisation of RM57.53 million.

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This article first appeared in The Edge Financial Daily, on July 29, 2016. Subscribe to The Edge Financial Daily here.