Seacera group managing director Zulkarnin Ariffin showing the company's tiles.
KUALA LUMPUR: The proposed RM220mil purchase of Duta Nilai Holdings Sdn Bhd, which would have given Seacera Group Bhd slightly more than 250 acres in Selangor to undertake a property development project, has been terminated.
The ceramic tiles manufacturer, which began diversifying into property development and construction last year, said it and Duta Nilai’s vendors had mutually agreed to cancel the proposed transaction.
However, Seacera might enter into future agreement subject to negotiation with the vendors at a later date, it said in a statement to Bursa Malaysia.
“No legal action will be involved as a result of the mutual termination,” the company noted.
Duta Nilai’s subsidiary Duta Skyline Sdn Bhd owns 250.24 acres of freehold land in Ulu Langat, Selangor, located about 2km off the Kajang Silk Highway. The land has been approved for a mixed development project and is valued at RM392.4mil as at March 22.
Seacera had seen the proposed acquisition as an opportunity for the group to increase its land bank with a minimal upfront cash outflow.
Its unit Seacera Properties Sdn Bhd inked a conditional sale and purchase agreement with Duta Nilai’s vendors - Ismail Othman and Zainab Mansor - on April 27 and the company had expected to complete the acquisition by the second quarter of this year.
