1Malaysia Development Board Bhd (1MDB) will be getting its hands on Tadmax Resources Bhd’s 125-hectare vacant leasehold land in Pulau Indah, Klang, Selangor, for RM294.37 million, which is a RM23 million or 7.2% discount from the original RM317.34 million that was agreed upon in a share sale agreement in February 20 this year.
In a filing with Bursa Malaysia today, Tadmax said it has entered into a supplemental share sale agreement with 1MDB’s unit Ivory Merge Sdn Bhd yesterday to vary certain terms and conditions of the earlier share sale agreement (SSA) that was inked in relation to the sale.
Tadmax’s earlier SSA involved the group disposing of the entire issued and paid-up share capital of its wholly owned unit, Tadmax Power Sdn Bhd, to Ivory Merge for RM317.34 million. Tadmax Power is currently the registered and beneficial owner of the Pulau Indah land.
“The disposal consideration (of Tadmax Power) will be revised from RM317.34 million to RM294.38 million, calculated at revised RM21.80 per sq ft vis-à-vis previously RM23.50 per sq ft of the subject land measuring 310 acres (125ha),” read the announcement.
The supplementary agreement yesterday also stipulated that the land will be sold on an “as is where is basis” in place of Tadmax being obliged to undertake a conversion of the use of the land from ‘bangunan’ (building) to ‘industri’ (industry).
It added that the completion of the deal shall be on or before June 30 next year, and that Ivory Merge shall bear all financial and related costs payable to Exim Bank and all outgoings in relation to the land, from August 28 this year until the full settlement of the disposal consideration.