UEMS

1.170

+0.02 (+1.7%)

(I) SALE AND PURCHASE AGREEMENT IN RELATION TO THE PROPOSED SALE OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR BY MEGA LEGACY (M) SDN BHD TO PEMBINAAN KERY SDN BHD; AND (II) DEVELOPMENT RIGHTS AGREEMENT BETWEEN MEGA LEGACY (M) SDN BHD AND PEMBINAAN KERY SDN BHD WITH REGARD TO THE DEVELOPMENT OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR

UEM SUNRISE BERHAD

Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-14092023-00002
Subject (I) SALE AND PURCHASE AGREEMENT IN RELATION TO THE PROPOSED SALE OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR BY MEGA LEGACY (M) SDN BHD TO PEMBINAAN KERY SDN BHD; AND (II) DEVELOPMENT RIGHTS AGREEMENT BETWEEN MEGA LEGACY (M) SDN BHD AND PEMBINAAN KERY SDN BHD WITH REGARD TO THE DEVELOPMENT OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR
Description
UEM SUNRISE BERHAD ("UEM SUNRISE" OR THE "COMPANY") 
(I) SALE AND PURCHASE AGREEMENT IN RELATION TO THE PROPOSED SALE OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR BY MEGA LEGACY (M) SDN BHD TO PEMBINAAN KERY SDN BHD; AND 
(II) DEVELOPMENT RIGHTS AGREEMENT BETWEEN MEGA LEGACY (M) SDN BHD AND PEMBINAAN KERY SDN BHD WITH REGARD TO THE DEVELOPMENT OF PART OF THE LAND HELD UNDER HS(D) 119301 PT 26689 IN MUKIM BATU, DAERAH KUALA LUMPUR
Query Letter Contents

We refer to your Company's announcement dated 11 September 2023, in respect of the aforesaid matter.

 

In this connection, kindly furnish Bursa Malaysia Securities Berhad with the following additional information for public release:-

 

1. To disclose the following information with respect to the existing tenancy arrangement:

(a) Name of the existing tenant and to state if the tenant is a related party to the UEM Sunrise Group;

(b) Description and usage of the rented space which forms part of the Land;

(c) Current rental income per month/per annum received from the tenant.

 

2. To clarify if the consent of the Economic Planning Unit stated under Section 2.1(b) is the same as the consent of the ‘Jawatankuasa Kerja Tanah Wilayah Persekutuan Kuala Lumpur’ stated under Section 2.3. Otherwise, to explain the reason for excluding the latter from the conditions precedent set out under Section 2.1(b).

 

3. With respect to Sections 2.1(h) & 2.1(i), to state the timeline involved for return of Balance Purchase Price, Deposit and payment of additional sum equivalent to the Deposit as agreed liquidated damages (where applicable) in the event of termination of the SPA.

 

4. To disclose the details of the Project in the manner set out in Paragraph 4, Part C of Appendix 10A of the Main Market Listing Requirements. Otherwise, to explain why the Company has yet to ascertain the Project’s total development cost and potential gross development value while such details have been disclosed in the announcement dated 11 September 2023 by Melati Ehsan Holding Berhad (“MEHB”).

 

5. To disclose the basis in deriving at the following:

(a) Profit sharing ratio between MLSB (80%) and PKSB (20%)

(b) Minimum Guaranteed Value

(c) Development Rights Value

 

6. To state the rationale for the arrangement made on the “Unsold Units” whereby any unit which remains unsold shall be deemed to have been sold to MLSB and be included as part of the sales proceeds of the Project. To also comment on the fairness and reasonableness of such arrangement and how it would not be detrimental to MLSB/UEM Sunrise Group.

 

7. To state the rationale, fairness and reasonableness for MLSB to compensate PKSB with the Minimum Guaranteed Value while waiting for the land to be developed and to define the timeframe for the ‘waiting period’ involved.

 

8. Given the compensation agreement disclosed in Section 2.7 coupled with the arrangements on the Exclusive Development Right and Unsold Units, please explain the reason why MLSB/UEM Sunrise Group does not keep the Land for its own development since it can have full control over the development of the Land and to demonstrate further how the Proposed SPA and Proposed DRA could be more beneficial than the option of a direct project development by MLSB/UEM Sunrise. To also disclose if UEM Sunrise Gorup has explored other means to repay its debt obligations and to meet MLSB’s working capital for the Residensi ZIG in Kiara Bay targeted to be launched in the third quarter of this year.

 

9. To provide the breakdown details for the intended utilisation of proceeds and the estimated amount of interest savings arising from the proposed debt repayment and to separate the proposed utilisation of proceeds for the Proposed SPA and Previous Land Sales given the difference in the expected completion timeline for such transactions.

 

10. To quantify the amount of the expected ‘increase of 48%’ in UEM Sunrise Group’s earnings and EPS mentioned in Section 8.2.

 

11. To clarify why the Proposals are anticipated to have no impact on the group’s gearing for FY2023 considering that the Previous Land Sales are anticipated to be completed in FY2023.

 

12. To state whether the Proposals are subject to the approval of MEHB’s and/or UEM SUNRISE’s shareholders.

 

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

 

 

Yours faithfully

 

 

 

 

Listing

Regulation

 

cc:-   Market Surveillance, Securities Commission

(Unless otherwise stated, the definitions used herein shall have the same meanings as set out in the announcement dated 11 September 2023.)

 

Reference is made to the announcement dated 11 September 2023 and the query from Bursa Malaysia Securities Berhad dated 14 September 2023 in relation to the Proposals (Reference number: IQL-14092023-00002).

 

The Company wishes to announce additional information in relation to the Proposals.

 

Please refer to the attachment for the details of the announcement.

 

This announcement is dated 15 September 2023.



Please refer attachment below.

Attachments

Reply to Query-2023 09 15.pdf
165.6 kB



Announcement Info

Company Name UEM SUNRISE BERHAD
Stock Name UEMS
Date Announced 15 Sep 2023
Category General Announcement for PLC
Reference Number GA1-15092023-00029