News

The Board of Directors of ASB wishes to announce that MHSB has on 30 July 2014 accepted a Letter of Offer/Intent for MW Urban Development Sdn Bhd (“Purchaser”) to purchase from MHSB the hotel property known as City Villa Kuala Lumpur (“City Villa”) located at No. 69, Jalan Haji Hussein, Off Jalan Tunku Abdul Rahman, 50300 Kuala Lumpur with Strata Titles Geran 85/M1/1-3, 4, 5-20/1 and Geran 85/M1/1-5/4, at Lot 2034, Section 41, Kuala Lumpur on an “as is where is” basis for a total cash consideration of RM33.0 million (“Purchase Price”) (“Proposed Disposal”).

The Purchase Price was derived on a willing buyer willing seller basis and after taking into consideration among others the net book value of City Villa.

The Purchaser has paid RM660,000.00 as earnest deposit on the date of acceptance of the said Letter of Offer/Intent by MHSB. The said earnest deposit shall form part of the 10% deposit upon execution of the Sale Agreement (“SPA”) by both parties. The SPA shall be finalised within 28 working days from the acceptance date of the said offer unless the time frame is extended by mutual consent in order to facilitate due diligence process on City Villa by the Purchaser and/or its consultants.

The Purchase Price shall be paid within 3 months from the date of the SPA with a further extension of 1 month with interest payable at 8% per annum calculated on daily basis on the outstanding balance Purchase Price until full payment.

The Proposed Disposal is subject to the inclusion of a “lease back clause” where the Purchaser shall let City Villa to MHSB at the annual rental of RM1.0 million per year for a total period of 2 years commencing from the date of settlement of the balance Purchase Price (“Leaseback”). The agreed total rental of RM2.0 million shall be offset/deducted from the balance Purchase Price simultaneously in exchange for the settlement of the balance Purchase Price in completing the Proposed Disposal.

The highest percentage ratio applicable to the Proposed Disposal is 7.66% pursuant to paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

None of the directors, major shareholders and/or persons connected with the directors and major shareholders of ASB has any interest, direct of indirect, in the Proposed Disposal and Leaseback.

A separate announcement will be released upon execution of the SPA.

This announcement is dated 31 July 2014.