Proposed Disposal By Kar Sin Berhad, A Wholly-owned Subsidiary Of YNH Of Property On All That Freehold Vacant Land In The Mukim Of Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan Kuala Lumpur For A Total Cash Consideration Of RM170.00 Million Only To Sunway Living Space Sdn Bhd (Proposed Disposal)
| Type | Reply to Query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | IQL-18012024-00003 |
| Subject | PROPOSED DISPOSAL BY KAR SIN BERHAD, A WHOLLY-OWNED SUBSIDIARY OF YNH OF PROPERTY ON ALL THAT FREEHOLD VACANT LAND IN THE MUKIM OF KUALA LUMPUR, DAERAH KUALA LUMPUR, NEGERI WILAYAH PERSEKUTUAN KUALA LUMPUR FOR A TOTAL CASH CONSIDERATION OF RM170.00 MILLION ONLY TO SUNWAY LIVING SPACE SDN BHD (PROPOSED DISPOSAL) |
| Description | YNH PROPERTY BHD ("YNH" OR "THE COMPANY") - PROPOSED DISPOSAL BY KAR SIN BERHAD, A WHOLLY-OWNED SUBSIDIARY OF YNH OF PROPERTY ON ALL THAT FREEHOLD VACANT LAND IN THE MUKIM OF KUALA LUMPUR, DAERAH KUALA LUMPUR, NEGERI WILAYAH PERSEKUTUAN KUALA LUMPUR FOR A TOTAL CASH CONSIDERATION OF RM170.00 MILLION ONLY TO SUNWAY LIVING SPACE SDN BHD ("PROPOSED DISPOSAL") |
| Query Letter Contents |
We refer to your Company’s Reply to Query announcement dated 25 May 2023 in relation to the aforesaid matter.
With respect to your reply stating that you shall seek advice from the adviser to rectify the oversight pertaining to the –
(i) Turnkey Construction Agreement entered into on 20 June 2016 between Great Wall Park Sdn Bhd (as developer) and Kar Sin Berhad (as contractor) for the purpose of developing the freehold land held under individual title H.S.(D) 47941 P.T. 48632 in the Mukim of Kuala Lumpur, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan Kuala Lumpur (“Property”) into a mixed residential and commercial development (hereinafter referred to as “the Mixed Development”) in accordance with the terms and conditions of the Turnkey Construction Agreement; and
(ii) subsequent termination of the said Turnkey Construction Agreement on 1 April 2022;
please provide the details and update on the materiality assessment undertaken by YNH on the above matters and the steps/actions taken in rectifying the oversight. Please also provide the name of the appointed adviser to address the oversight and the date of appointment accordingly.
YNH is also required to ensure that an announcement on the said Turnkey Construction Agreement (together with the salient terms of the Turnkey Construction Agreement agreement) and its subsequent termination together with details on the penalty incurred by the parties involved as well as the operational, business and financial impacts to Kar Sin Berhad and/or YNH arising from the termination of the Turnkey Construction Agreement) is made in accordance with the relevant provisions of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) including Chapter 10 of the MMLR, if applicable.
In addition, please provide a statement to clarify whether the Turnkey Construction Agreement/Mixed Development project is subject to the regulatory authorities’ queries and investigations regarding some joint venture and turnkey contracts entered by the Group mentioned in YNH’s announcement dated 27 October 2023.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
Yours faithfully
Listing Regulation
cc:- Market Surveillance, Securities Commission |
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We refer to Company’s reply to query announcement dated 25 May 2023 and query from Bursa Malaysia Securities Berhad vide its letter dated 18 January 2024 in relation to the Proposed Disposal.
(Unless otherwise stated, the definitions set out in the Announcement shall apply herein.)
In response to the oversight, the Company has implemented an internal control policy to govern all transactions. This refined process is structured to undergo meticulous verification by senior management before progressing to the board for a final decision, thereby ensuring that past oversight issues will not recur. This improvement reflects the Company's commitment to enhancing its internal controls and governance procedures. In light of the newly adopted internal policy, the Company has opted not to appoint an external adviser. This decision aligns with the commitment to stringent internal controls and oversight, reinforcing the Company's dedication to maintaining the integrity of its financial processes.
The Company will make a separate announcement in relation to the Turnkey Construction Agreement under Chapter 9 of the Main Market Listing Requirements today.
The Company, after thorough confirmation and to the best of its knowledge, asserts that it is not aware of any queries or ongoing investigations on the Turnkey Construction Agreement / Mixed Development project.
This announcement is dated 19 January 2024. |
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Announcement Info
| Company Name | YNH PROPERTY BERHAD |
| Stock Name | YNHPROP |
| Date Announced | 19 Jan 2024 |
| Category | General Announcement for PLC |
| Reference Number | GA1-19012024-00062 |