Reference is made to our announcements dated 14 March 2023, 17 March 2023, 31 March 2023, 3 April 2023, 2 May 2023, 24 May 2023, 25 May 2023, 1 June 2023, 3 July 2023, 6 July 2023, 7 July 2023, 1 August 2023, 1 September 2023, 2 October 2023, 1 November 2023, 1 December 2023, 2 January 2024, 2 February 2024 and 23 February 2024 in relation to the Default in Payment pursuant to Paragraph 9.19A of the Listing Requirements. Unless otherwise stated, the terms used throughout the announcement shall have the same meanings as defined in the Announcements.

Further to our announcement on 23 February 2024 regarding the sale of the Charged Assets by Receivers and Managers of Andaman Resort Sdn Bhd ("R&M"), we were informed by the R&M on 27 February 2024 that the Charged Assets had been disposed at a total purchase consideration sum of RM130.0 million to Mutiara Hotels & Resort Sdn Bhd ("Disposal by R&M").

The Charged Assets comprise of the following:

1. 99-year leasehold land measuring approximately 29.9 acres expiring on 18 September 2087. Erected on the land, are buildings that were used as a 5-star international beach resort;

2. Land rights for spa purposes, measuring approximately 2.86 acres;

3. Land rights for staff quarters purposes, measuring approximately 15.9 acres; and

4. Equipment and motor vehicles.

The Disposal by R&M is expected to result in an estimated gain of approximately RM103.9 million which is expected to increase the Company's consolidated net asset per share and earnings per share. For illustration purposes, assuming that the Disposal by R&M had been effected on 31 December 2022 (being the date of the Company’s most recent audited consolidated financial statements), the pro forma net asset per share is approximately RM2.8 and the pro forma earnings per share is approximately RM0.09.

On completion of the Disposal by R&M, the Group will have no gearing and will be in a net cash position of about RM92.4 million before tax and expenses. 

The Andaman Resort was substantially destroyed by a fire on 12 January 2021 and had ceased its operation since then.

This announcement is dated 28 February 2024.