Landmarks cancels plan to sell assets in Indonesia's Treasure Bay Bintan

TheEdge Fri, Dec 29, 2023 11:50pm - 5 months View Original

KUALA LUMPUR (Dec 29): Landmarks Bhd has terminated its plan to sell its entire stake in two companies that own hospitality assets in Indonesia to Southern Archipelago Ltd or SAL (formerly known as Blumont Group Ltd), citing the prolonged completion timelines and volatile market conditions.

The stakes, held through its indirect wholly-owned subsidiary Tiara Gateway Pte Ltd, comprised a 49% equity interest in Mendol Investments Pte Ltd and 100% equity interest in Hinako Investments Pte Ltd.

“The decision by the board on the termination was arrived at after taking into consideration the extended period of time for completion of the current transaction and the volatile market conditions which had led to the withdrawal of the draft circular in relation to the revised proposed disposals which was submitted to Bursa Securities,” Landmarks said in a filing on Friday.

In October 2021, Landmarks had proposed the disposal of stakes in Mendol and Hinako as well as three other companies for a combined S$63.5 million (equivalent to RM196 million at that time), with the purchase consideration to be fully satisfied via the issuance of new shares in SAL.

The five companies are involved in operations and/or own lands located in Chill Cove — a 52-hectare waterfront resort city located within Treasure Bay Bintan on the Indonesian island of Bintan, developed by Landmarks and its subsidiaries. Chill Cove is an attraction park comprising a 5-star hotel, an activity hub, a desert-inspired glamping concept resort and a marine park.

However, in October 2022, Landmarks revised the proposal to comprise only two companies, namely Mendol and Hinako. Under the revised deal, the 49% stake in Mendol was valued at S$14.48 million (RM48.38 million then) and the 100% equity interest in Hinako at S$13.68 million (RM45.7 million then).

The transaction was deemed a related party transaction as Landmark’s executive deputy chairman, chief executive officer and substantial shareholder Mark Wee Liang Yee is also the controlling shareholder of SAL.

In its filing on Friday, Landmarks said that following the termination of the revised proposal, the two parties are unconditionally discharged from any claims, demands, liabilities and obligations under the agreement.

It added that the group will continue to explore opportunities for any investment interest or strategic partners for development in Treasure Bay Bintan.

Shares in Landmarks closed down 1.5 sen or 4.62% at 31 sen on Friday, with a market capitalisation of RM205.02 million. The stock has increased 63.16% year to date.

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