In a filing with Bursa Malaysia today, DRB-Hicom said its indirect wholly-owned subsidiary company, Hicom Megah Sdn Bhd, and the minority shareholders of Corwin, namely Mohamed Mustafa & Samsuddin Co Pte Ltd and B.I. Distributors Pte Ltd had inked a non-binding term sheet with Lum Chang Holdings Ltd (LCH) to dispose of the entire 100% equity interest in Corwin, comprising 14.5 million shares and 866,840 redeemable preference shares.
The sale is subject to terms to be finalised in the definitive agreements for the proposed sale, it added.
DRB-Hicom said upon signing of the term sheet, LCH will commence due diligence on Corwin, as well as commence negotiations with the vendors to agree and finalise the terms of the binding definitive agreements for the sale within a month or such other date to be mutually agreed.
“The term sheet is not intended in any way to create legal relations or to constitute a contractually binding arrangement between the Parties, except for certain provisions i.e. exclusivity period and due diligence, confidentiality, counterparts and governing law and jurisdiction,” the company said.
DRB-Hicom said the proposed disposal allows the group to unlock the value of its investment in Corwin, based on the property's prevailing market value.
The Verge is a leasehold property with an 8-level shopping mall building, comprising six storeys and two basement levels, as well as another 8-storey building known as Chill @The Verge.
The company had first announced plans to dispose its 90% stake in Corwin to Evolutyon Real Estate Investment Holding Pte Ltd for S$285.3 million, but announced in May this year that the deal was scrapped. DRB-Hicom said the termination was due to the inability of the purchaser to fulfill its contractual obligations on the agreed completion date.
Hicom Megah’s total investment in Corwin from 1997 until 2015, was about RM224.94 million.
DRB-Hicom shares closed unchanged at RM1.02 today, for a market capitalisation of RM1.97 billion.
DRBHCOM (1619) - DRB-Hicom revives plan to sell The Verge in Singapore to new vendor