Update on the demerger proposal
20 October, 2020
Aseana Properties Limited ("Aseana" or the "Company")
Update on the demerger proposal and on the sale of two land plots in Kota Kinabalu
The Demerger proposal
Aseana Properties Limited (LSE: ASPL LN), a property developer in both Malaysia and Vietnam which is listed on the Main Market of the London Stock Exchange, entered into certain agreements on 15 July 2020 (the "Demerger Agreements") in relation to proposals to demerge certain assets held by the Company in exchange for the buyback and cancellation of a significant percentage of the issued ordinary shares of US$0.05 each in the capital of the Company (the "Shares") and those agreements contained a long stop date of 14 October 2020 by which date the demerger needed to have been completed or the date reset by mutual agreement of all signatories. This date was extended on 14 October to 19 October 2020 as announced on 14 October 2020.
The Directors of Aseana and all parties to the Demerger Agreements have now signed addendums to them to establish a new long stop date of 27 November 2020. This is necessary to allow Ireka Corporation Berhad ("Ireka"), one of the Participating Shareholders in the demerger further time to call and hold an Extraordinary General Meeting ("EGM") of its independent shareholders to seek approval for the demerger. In addition, the Company's bankers and holders of the Medium Term Notes have yet to approve the demerger and it is hoped that such approval can be obtained during this extension period. All other required consents for the demerger have been obtained.
The sale of two land plots in Kota Kinabalu, Sabah, Malaysia
Aseana entered into two Sale and Purchase Agreements on 16 July 2020 to sell two adjacent plots of land in Kota Kinabalu to a party related to Ireka for a total cash consideration of approximately US$4 million. The Company received a 20% cash deposit at that time and the balance of the proceeds were expected to be received when the sales completed on or before 14 October 2020. These sales were not dependent on the completion of the demerger transaction. However, the land plots are secured against certain bank loans to the Aseana group and Aseana is still in discussions with the lender to release such security. As a result, the completion of these land sales has been delayed with a longstop date of 13 November 2020. The buyer of the land plots has however indicated that it still intends to complete these transactions.
For further information:
Aseana Properties Limited
Tel: +44 20 3325 7050
Nick Paris, Chairman
Tel: +44 20 3100 2000
Gillian Martin / Owen Matthews