We refer to our announcements on 29 January 2007 and 27 April 2007 in relation to the Proposed Development.The Proposed Development is conditional, inter alia, upon the fulfillment of the following Conditions Precedent ("CP"):i) That within six (6) months from the date of the development agreement (“DA”) in respect of the Proposed Development (or such extension as may be agreed in writing by SPD), FBSB shall procure the issuance of Form 5A and SPD agrees to pay all payments in relation to the Form 5A on behalf of FBSB to the appropriate authorities within three (3) months from the issuance of Form 5A;ii) That within three (3) months from the date of full payments to the appropriate authorities pursuant to the Form 5A (or such extension as may be agreed in writing by SPD), the issue of land title in the name of FBSB for a lease term of 99 years and free from all encumbrances and FBSB shall deposit the land title on issue thereof with SPD; andiii) That within six (6) months from the date of issue of land title and the deposit of the same with SPD (or such extension as may be agreed in writing by SPD), the procurement of the written consent of the Foreign Investment Committee (“FIC Approval”) on the Proposed Development.Save for the FIC Approval which was received on 27 April 2007, the other CPs which were critical to the Proposed Development have not been fulfilled within the six (6) months period from the date of the DA and the subsequent extension of time granted by SPD to FBSB. The Board of Directors of Mah Sing (“Board”), after due deliberation and consideration, is of the opinion that the prolonged delay on the fulfillment of CPs is deemed not to be in the interest of SPD to proceed further with the Proposed Development. Hence, the Board wishes to announce that SPD has, on 28 March 2008, exercised its rights under the DA to call for a termination of the DA (“Termination”).Pursuant to the Termination, the deposit of RM420,000 paid by SPD upon execution of the DA will be refunded by FBSB to SPD in accordance to the terms of the DA. The Termination is not expected to materially affect the future earnings of the Group.This announcement is dated 31 March 2008.
(KLSE 31-3-2008)
