The Directors of Ireka Corporation Berhad (“Ireka”) announces that Ireka has on 7 May 2020 signed a non-binding Heads of Agreement with Aseana Properties Limited (“Aseana”) to consider participating in a re-organisation exercise of Aseana. The exercise would involve separating the interests of Ireka Group and its concert party Legacy Essence Limited (“Legacy Essence”) along with certain other Shareholders (the “Participating Shareholders”) who together own approximately 50% in aggregate of the outstanding shares in Aseana, from those of Aseana (“De-merger Arrangement”).  Aseana would buy back shares of the Participating Shareholders on a set date in exchange for an in specie distribution of certain assets owned by Aseana to the Participating Shareholders, together with the settlement of amount owing between Ireka Group and Aseana. It is presently contemplated that those assets will comprise The RuMa Hotel and Residences in Kuala Lumpur, a portion of the land owned by Aseana in Kota Kinabalu, Sabah and certain residual assets from past developments. Any shares so acquired by Aseana would be cancelled. Following the reorganisation there would be a complete separation of interests of Aseana from Ireka.

Ireka and Aseana target to sign binding agreements in respect of the De-merger Arrangement by 21 May 2020. Further announcement will be made upon the signing of these agreements.

This announcement is dated 7 May 2020.