Reference is made to the Company's announcement dated 29 January 2015 on the Development Agreement dated 29 January 2015 ("Development Agreement") entered into between the Company's wholly-owned subsidiary held through Pasdec Corporation Sdn. Bhd., Pasdec Putra Sdn. Bhd. ("Pasdec Putra" or "Landowner") and Sejati Bumijaya Sdn. Bhd. ("Sejati Bumijaya" or "Developer") for the proposed development of Geran 37056 Lot 137673 measuring approximately 110.55 acres, Geran 37057 Lot 137674 measuring approximately 24.63 acres and 258 pieces subdivided land held under separate individual titles at Bandar Putra, Mukim Kuala Kuantan, District of Kuantan, Pahang belonging to the Landowner (collectively referred to as "Lands") by Sejati Bumijaya. 

The Board of Directors of PASDEC ("Board") wishes to announce that due to differences in opinions and challenges faced by the Developer in developing the Lands, the Landowner and Developer have mutually agreed to rescind and terminate the aforesaid Development Agreement on 18 May 2022 ("the Termination").

The Landowner shall refund to the Developer the deposit paid and agreed costs incurred by the Developer under the Development Agreement amounting to RM23,951,701.00 ("Settlement Sum") in the manner agreed with the Developer and the Developer shall cancel/revoke the Power of Attorney given by the Landowner under the Development Agreement promptly upon the Termination.

On the execution of the settlement agreement and payment of the first payment of the Settlement Sum to the Developer's solicitors as stakeholder, and upon receiving confirmation from the appointed solicitors today, the parties agreed that the Termination shall take effect on 18 May 2022.

Arising from the Termination, the parties shall release each other from all obligations under the Development Agreement and the Landowner is free to deal with the Lands as it deems fit without further reference to the Developer. 

The Termination is not expected to have any material impact on the net assets and earnings of PASDEC Group for the financial year ending 31 December 2022.

None of the Directors or major shareholders or persons connected to them, has any interest, direct or indirect, in the Termination.

This announcement is dated on 19 May 2022.