Mah Sing recovers RM35.96m deposit from aborted Seremban land deal

KUALA LUMPUR (Dec 29): Mah Sing Group Bhd will be receiving RM35.96 million by Dec 31, 2015, representing the refund of the entire deposit for the acquisition of land in Seremban. The acquisition was terminated in August 2015.

In a statement yesterday, the group said the vendor had offered to settle the dispute out of court by refunding the entire deposit, and Mah Sing has agreed to the settlement to avoid a protracted litigation.

“With this settlement, vendors have withdrawn their counterclaim, with no liberty of filing their claim afresh in this suit,” Mah Sing said.

In mid-August this year, the group rescinded the purchase of a prime freehold tract in Seremban measuring 1,051.3 acres for RM359.56 million, due to a breach of terms in the sale and purchase agreement (SPA) by the vendors.

Mah Sing has also demanded the refund of the 10% deposit, RM35.96 million, together with interests earned thereon, from the vendors.

The cancellation of the land deal came after the group revealed that seven individuals had initiated a legal suit against Grand Prestige Development Sdn Bhd, a wholly owned unit to Mah Sing, over the proposed acquisition.

The plaintiffs, the alleged undivided registered proprietors/beneficial owners of the land, had sought for, amongst others, a declaration that the SPA entered into between Grand Prestige and the vendors on Aug 11, 2014, was invalid.

The vendors, on the other hand, are the surviving trustees appointed by all registered and beneficial owners of the land, to be their sole and absolute trustees in respect of the land, according to Mah Sing’s previous filing.

Mah Sing fell three sen or 2.13% to RM1.38 at the close of trading yesterday, giving it a market capitalisation of RM3.4 billion. -- theedgmarkets.com

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