Olympia aborts sale of flagship building
PETALING JAYA: Olympia Industries Bhd has decided to abort the proposed disposal of its flagship corporate building Menara Olympia in Kuala Lumpur to Jelita Timur Sdn Bhd.
It announced to Bursa Malaysia yesterday that Jelita Timur said it would withdraw from the transaction due to the delay on Olympia’s part in obtaining the requisite approvals to date and the inability of the company to complete the sale at this juncture.
“Provided the company is able to refund the deposit paid by the purchaser (Jelita Timur) of RM3.015mil in full together with interest earned, the purchaser will not deem the company to be in breach of its obligations as set out in the sale and purchase agreement dated April 9, 2010.
“In view of the uncertainties regarding the transaction, the board of Olympia has deliberated on the commercial and legal aspects of the transaction and has unanimously agreed that it is in the best interest of the company to mutually abort the transaction,” it said.
In June, Olympia received a directive from Bursa to conduct a second valuation on Menara Olympia and the adjoining car park, with the professional valuer to be appointed by Bursa Malaysia Securities. The valuer was appointed last month.
Bursa Securities had also instructed Olympia not to complete the sale of its wholly-owned subsidiary Dairy Maid Resort & Recreation Sdn Bhd, which owns and manages the building, without prior consultation with the regulator.
Olympia entered the agreement with Jelita Timur for the sale of 100% equity interest in Dairy Maid Resort & Recreation in April.
The agreed value of the leasehold land and building known as Menara Olympia was RM190mil and the agreed value of the rights to operate the car park granted by the Government (which will expire on Dec 26, 2025) was RM10mil.
The properties to be sold were charged to secure combined debts of about RM172.5mil outstanding as of the date of the agreement.
Under the agreement, Dairy Maid would be subject to the liabilities under a loan to be obtained by Jelita Timur for the company to redeem the Olympia securities comprising RM49.118mil redeemable unsecured loan stocks and RM70.682mil irredeemable convertible bonds and the loan facility of RM52.72mil obtained by Dairy Maid which were secured against legal charges created over Menara Olympia.
By The Star Online