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TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS Cycle & Carriage Bintang Berhad ("CCB" or "Purchaser") - Proposed Acquisition of 3 Pieces of Freehold Vacant Lands in Bandar George Town, Daerah Timor Laut, Negeri Pulau Pinang measuring approximately 35,420.84 square feet for purchase consideration of RM24,205,460

CYCLE & CARRIAGE BINTANG BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
Cycle & Carriage Bintang Berhad ("CCB" or "Purchaser") - Proposed Acquisition of 3 Pieces of Freehold Vacant Lands in Bandar George Town, Daerah Timor Laut, Negeri Pulau Pinang measuring approximately 35,420.84 square feet for purchase consideration of RM24,205,460

Unless otherwise defined herein, all terms and acronyms used in this announcement shall be the same as those defined in CCB’s previous announcement dated 27 February 2020.

 

Further to the previous announcement dated 27 February 2020 on the Proposed Acquisition, CCB wishes to clarify that it had appointed Savills (Penang) Sdn Bhd (“Savills”) to conduct a valuation on the Land in October 2018 when the acquisition was first considered and negotiated.

 

Based on the valuation conducted by Savills on 10 October 2018 (“Valuation Date”) by adopting the “comparison approach”, it was of the opinion that the market value of the Land as at the Valuation Date was slightly above RM750 per square feet in its existing condition with vacant possession and subject to the titles being free from all encumbrances and registrable.

 

The “comparison approach” entails comparing the Land with comparable lands which have been sold or are being offered for sale and making adjustment for factors which affect value such as location and accessibility, market conditions, size, tenure and restrictions, if any, and other relevant characteristics.

 

According to the Malaysian Valuation Standards, market value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

 

Following parties’ negotiation, CCB and the Vendor first arrived at the total aggregate purchase consideration of RM24,263,000 (approximately RM685 per square feet) for all 3 pieces of lands on a “willing buyer willing seller” basis.

 

Subsequently, due diligence conducted by CCB on the Land revealed that there was a minor encroachment on the Land measuring 84 square feet due to part of the boundary walls erected by the neighbouring properties on part of the Land. As a result, parties agreed to reduce the purchase consideration by RM57,540 (calculated based on RM685 per square foot multiplied by total encroachment area of 84 square feet). Thereafter, the final purchase consideration was agreed at RM24,205,460.

 

This announcement is dated 2 March 2020.






Announcement Info

Company Name CYCLE & CARRIAGE BINTANG BERHAD
Stock Name CCB
Date Announced 02 Mar 2020
Category General Announcement for PLC
Reference Number GA1-28022020-00058