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Anzo's planned PJ car showroom centre fails to take off

TheEdge Thu, Jan 23, 2020 06:49pm - 4 months ago

KUALA LUMPUR (Jan 23): Anzo Holdings Bhd, an affected listed issuer that may not have a level of operations adequate to warrant continued trading or listing on Bursa Malaysia, announced today the termination of two collaboration agreements it inked nearly three years ago for a planned RM420 million project in Petaling Jaya, Selangor.

The first was the collaboration agreement signed between its wholly-owned subsidiary Harvest Court Properties Sdn Bhd (now known as Anzo Properties Sdn Bhd) and Captivate Max Sdn Bhd, which Anzo said has been terminated due to unfavourable market conditions.

"In consideration of the current market conditions with no sign of recovery in the near future, the parties have no intention to extend the term of the collaboration agreement and agreed to the automatic termination upon expiry of validity period in accordance with Clause 6 of the said collaboration agreement," Anzo said in an exchange filing today.

Separately, Anzo said the collaboration agreement between Anzo Properties and DVM Innovate Sdn Bhd — a unit of Key Alliance Group Bhd — for the development of a proposed e-commerce fulfilment hub, has also been terminated upon expiry.

Anzo said it was unable to execute a formal agreement with DVM Innovate following the termination of the aforementioned collaboration agreement with Captivate Max, which is the landowner.

In May 2017, Anzo announced it was partnering landowner Captivate Max, to develop a car showroom centre with four blocks of office towers, worth an estimated gross development value of RM420 million, on a plot in Petaling Jaya, Selangor.

A month later, the company said it signed an agreement for the collaboration between Harvest Court and DVM Innovate to develop a proposed e-commerce fulfilment hub.

The hub was supposed to form part of the RM420 million gross development value car showroom centre and office towers project in Petaling Jaya, which would have been developed by the Anzo Properties and Captivate Max joint venture.

Last October, Anzo announced that it has become an affected listed issuer and triggered Paragraph 8.03A(2)(b) of the Main Market Listing Requirements, as it has an insignificant business or operations.

The contractor and timber service provider had submitted an application to Bursa Securities, seeking a waiver, from, among others, having to submit a plan to regularise its condition. But the application was rejected.

On Jan 6, Anzo said it is in the midst of formulating the regularisation plan, adding it will not result in a significant change in the business direction or policy of the company.

Shares in Anzo finished half a sen lower today at 2.5 sen, giving it a market capitalisation of RM22.02 million. The stock is down near 38% from a year ago.

Read more:
Anzo declared affected listed issuer
Anzo’s RM153m Malacca construction contract terminated
Anzo plans RM420m car showroom centre in PJ
Anzo to collaborate with Key Alliance for e-commerce hub

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