REG - Aseana Prop Ltd - Legal Action update

Aseana PropertiesAnnouncement

29/01/2024 07:30

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RNS Number : 1308B  Aseana Properties Limited  29 January 2024

29 January 2024

Aseana Properties Limited

("ASEANA", the "Company" or the "Group")

Legal Action update

Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia listed
on the Main Market of the London Stock Exchange, announces that it has
withdrawn a legal action that it was taking in the Malaysian Courts against
Ireka Corporation Berhad ("ICB") the parent company of its former development
manager, for non-payment of various debts owed to the Group. The case had been
due to start today but has been withdrawn as ICB and the Company have signed a
Settlement Agreement (the "Agreement") whereby ICB will transfer 38,837,504
shares in the Company (representing approximately 19.55% of the issued share
capital excluding treasury shares) plus its 30% shareholdings in the two joint
venture companies that own The RuMa Hotel & Residences in Kuala Lumpur to
the Company (collectively the "Settlement"). The Company owns the remaining
70% of these joint venture companies.

 

The impact of the Settlement would be to decrease the Group's Net Asset Value
from US$69.1 million reported in the unaudited half year results as at 30 June
2023, to a pro forma unaudited Net Asset Value of US$63.4 million as at the
same date.  It is anticipated that the 38,837,504 shares received pursuant to
the Agreement will be put into Treasury and as a consequence the Net Asset
Value per share would increase from US$0.35 as at 30 June 2023 to a pro forma
Net Asset Value per share of approximately US$0.40.

 

The Agreement is conditional on the Company obtaining shareholder approval for
the buyback of the 38,837,504 shares held by ICB in the Company at an
Extraordinary General Meeting which will be called shortly, and on ICB
obtaining approval for the Settlement in the Winding Up Court in Malaysia
within 30 days of signing of the Agreement. The Settlement will constitute
full and final settlement of the debts due by ICB to the Company.  Should the
conditions of the Agreement not be satisfied, the Company's directors are
uncertain as to whether ICB would be able to satisfy its outstanding debts to
the Group due to the fact that ICB is classified as a financially distressed
company under Practice Note 17 (PN 17) status in accordance with the listing
regulations of Bursa Malaysia.

 

Work continues on the sale of the Sandakan hotel asset and the adjacent
Harbour Mall Sandakan and to repay the guarantor banks who now hold the Medium
Term Notes. The purchaser of the 32 unsold residences at The RuMa Hotel &
Residences in Kuala Lumpur has been unable to finance this acquisition and the
contract has therefore been cancelled and the 10% deposit has been forfeited.
Due to the delay in completing the sales of these key assets, the Company is
seeking to raise short term finance of up to US$2 million to provide working
capital until the sales are completed.

 

For further information:

Aseana Properties Limited

Nick, Paris, Non-Executive Chairman
                       +44 (0)7738 470550

nickparis@btinternet.com (mailto:nickparis@btinternet.com)

 

Grant Thornton UK LLP

Philip Secrett, Enzo
Aliaj
    +44 (0)207 383 5100

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

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