Klse Announcement: SP Setia

PROPOSED ACQUISITION BY SETIA ECO VILLA SDN BHD (FORMERLY KNOWN AS OPTAGREEN SDN BHD) ("SETIA ECO VILLA" OR "PURCHASER"), A WHOLLY-OWNED SUBSIDIARY OF S P SETIA, OF APPROXIMATELY 156.38 ACRES OF FREEHOLD LANDS HELD UNDER 3 TITLES SITUATED IN THE MUKIM OF DENGKIL, DISTRICT OF SEPANG FROM CYBERVIEW SDN BHD ("CYBERVIEW" OR "PROPRIETOR") AND SETIA HARUMAN SDN BHD ("SETIA HARUMAN" OR "DEVELOPER") FOR A TOTAL PURCHASE CONSIDERATION OF RM190,599,393.60 ("PROPOSED ACQUISITION")
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(Unless otherwise indicated, specified or defined (or re-defined as the case may be) in this announcement, the definitions in the announcements dated 25 July 2007, 25 January 2008 and 10 March 2008 apply throughout this announcement.)We refer to our announcements dated 25 July 2007, 25 January 2008 and 10 March 2008 in relation to the subject matter.The Proposed Acquisition was conditional, inter alia, upon the fulfillment of the following conditions precedent within a period of six (6) months from the date of the SPA ("Approval Period"): 1) procurement of approvals by the Developer from the relevant authorities for the layout plan and development order provided by the Purchaser on terms and conditions acceptable to the Purchaser; and 2) approval of the relevant authorities and/or other persons for the construction of the primary road connecting the Land from Cyberjaya to primary road at Precinct 11, Putrajaya.These conditions are deemed critical to the successful implementation of the proposed mid to high end development and formed the basis for the Land Purchase Consideration of RM169,299,393.60 or an average of RM24.85 psf.The Approval Period expired on 25 January 2008 with the above conditions precedent remaining unfulfilled. On 25 January 2008, the parties to the Proposed Acquisition ("Parties") agreed to extend the Approval Period by 45 days to expire on 10 March 2008 ("Extended Approval Period") for the purpose of enabling Setia Haruman, as the master developer of the Cyberjaya Flagship Zone, to procure the fulfillment of the above conditions precedent. Upon expiry of the Extended Approval Period the Parties agreed to a further extension of 7 days until 17 March 2008 to negotiate certain amendments to the terms of the SPA in view that the above critical conditions precedent had still not been fulfilled by Setia Haruman.The Board of Directors of S P Setia wishes to announce that given that the Parties have been unable to agree on the amendments to the terms of the SPA, the Parties have decided to mutually terminate the Proposed Acquisition due to non-fulfillment of the above conditions precedent.Pursuant to the above, the Deposit will be refunded to Purchaser in accordance to the terms of the SPA. The termination of the Proposed Acquisition is not expected to materially affect the future earnings of the Company.This announcement is dated 17 March 2008.