News

We refer to our announcements dated 8 February 2021 and 30 August 2021 (“the Announcements’) in relation to the disposal of one (1) eight (8) storey stratified corporate office building known as Block 12, Corporate Park, Star Central @ Cyberjaya (the “Property”). The Company will adopt the same references as set out in the Announcements.

INTRODUCTION

The Company’s wholly-owned subsidiary, Awantec Systems Sdn. Bhd (formerly known as Prestariang Systems Sdn. Bhd.) (the “Vendor”) had on 8 February 2021 agreed to sell and Serba Dinamik Group Berhad (the “Purchaser”) had agreed to purchase the Property together with its attached fixtures and fittings as listed in the Sale and Purchase Agreements dated 8 February 2021 (“SPAs”), for a total cash consideration of Ringgit Malaysia Twenty-Four Million Two Hundred Thousand (RM24,200,000.00) only (“Purchase Price”), subject to the terms and conditions laid down in the aforesaid SPAs.

Upon the fulfilment of the condition precedent under the SPAs, the SPAs were scheduled to be completed on 31 July 2021 with an option to extend for up to one month.

Pursuant to the Purchaser’s request, the Vendor had further agreed to grant an extension of time for the Purchaser to pay the Balance Purchase Price by 31 October 2021.  

The Company wishes to announce that the Vendor and the Purchaser had on 10 November 2021 entered into a Mutual Termination Agreement (“MTA”) with the Company to terminate the SPAs accordingly.

RATIONALE FOR THE MUTUAL TERMINATION OF SPAS

As the Purchaser is unable to complete the purchase of the Property in accordance with the terms of the SPAs, the Vendor and the Purchaser mutually agreed to terminate the aforesaid SPAs subject to the terms and conditions of the MTA.

SALIENT TERMS OF THE MTA

i. The deposit paid by the Purchaser amounting to RM2,420,000.00 (Ringgit Malaysia Two Million Four Hundred and Twenty Thousand) (the “Deposit”) is forfeited as per clause 6 (ii)(a) of the SPAs.

ii. Vendor is at liberty to sell or otherwise deal with the Property in any manner as the Vendor deems fit without reference to the Purchaser.

iii. Subject to the Vendor’s consent and discretion, the Purchaser is allowed to purchase the Property at the same price per the SPAs on or before 30 April 2022 (“the Expiry”) less a discount of up to RM2,420,000.00 adjusted for items described in the MTA. The Parties agreed that in the event the Purchaser decides to purchase the Property, the Parties must enter into a series of new sale and purchase agreements which must be executed and completed on or before the Expiry.

FINANCIAL AND LEGAL IMPACTS

The termination of the SPAs will not have any material impact on the earnings, net assets and net assets per share of the Company.

Save for the obligations provided under paragraph 3 of this announcement, the Parties shall release each other from all obligations under the SPAs.

EFFECTIVE DATE OF THE MUTUAL TERMINATION OF SPAs

The SPAs shall terminate with effect from 10 November 2021.

APPROVALS REQUIRED

The MTA is not subject to the approval of the shareholders of AWANTEC.

INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED TO THEM

None of the Directors and Major Shareholders of AWANTEC and persons connected to them have any interest, direct or indirect, in this mutual termination of SPAs.

STATEMENT BY DIRECTORS

The Board of Directors of AWANTEC, after having considered all aspects is of the opinion that the mutual termination of SPAs is in the best interest of AWANTEC Group.

DOCUMENT FOR INSPECTION

The MTA is available for inspection at the registered office of the Company at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50250 Kuala Lumpur during normal business hours on Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement.

In adherence to the standard operating procedures imposed by the regulatory authority(ies), all inspection of documents at the registered office of the Company can only be conducted by prior appointment only. Please contact 03-2084 9000 for appointment request(s).

This announcement is dated 10 November 2021.