It was previously disclosed that:

&bull CCPSB received a letter from MK Mustafa stating that MK Mustafa will waive off CP (2), CP (3) and CP (4) (&lsquo Waived CPs&rdquo ) as Conditions Precedent of the SPA.

&bull With the waiver of CP (2), CP (3) and CP (4) and the fulfilment of CP (1) and CP (5), the  SPA became unconditional.

The conditions precedent (&ldquo CP&rdquo ) in the SPA are:

(1) The Vendor&rsquo s receipt of the letter from the Relevant Authorities granting a release of the Bumi Reserved Units from being required to be sold to only Bumiputera individuals and/or entities and/or permitting the Bumi Reserved Units to be sold or transferred to any non-Bumiputera individuals and/or entities   On 21 December 2023, CCPSB received the approval letter from the State Authority granting the release of Bumi Plots to Non-Bumi Plots. With the receipt of the approval letter, CCPSB has satisfied CP (1).   

(2) The Purchaser obtaining the written confirmation from the Economic Planning Unit within the Prime Minister&rsquo s Department of Malaysia (&ldquo EPU&rdquo ) stating that no approval from EPU is required for the sale and purchase of the Property under this Agreement   On 24 April 2024, MK Mustafa has received the written confirmation from EPU (&ldquo EPU Confirmation&rdquo ). With the receipt of the EPU Confirmation, MK Mustafa has fulfilled the Waived CP (2). 

(3) The Purchaser obtaining the approval from the State Authority in respect of the acquisition of the Property by the Purchaser from the Vendor pursuant to Section 433B of the National Land Code   On 19 August 2024, MK Mustafa received the approval from State Authority pursuant to Section 433B of the National Land Code (the &ldquo 433B Approvals&rdquo ) for 55 units out of the 591 units that were sold to MK Mustafa.  The 433B Approvals for the remaining 536 units are still outstanding. 

(4) The Purchaser obtaining a loan from the Financier, unless waived by the Parties in writing   Waived By Mustafa

(5) The discharge of APSB&rsquo s Charge and the redemption of the Collateral Units from APSB.  As per announcement dated 11 December 2023, CCPSB has completed the settlement to APSB pursuant to the SSA. On 6 February 2024, CCPSB&rsquo s lawyers informed CCPSB that they have received the certificate of registration of satisfaction of charge in respect of the Collateral Units (the &ldquo Certificate&rdquo ) from the Companies Commission of Malaysia (&ldquo CCM&rdquo ). With the receipt of the Certificate from CCM, CCPSB has fulfilled CP (5).


 

What is the rationale for MK Mustafa paying a sum of RM30,000,000 to CCPSB, on or before 30 June 2024?

Company&rsquo s response

MK Mustafa has agreed to provide an additional deposit of RM30 million to CCPSB as a goodwill gesture and also to show MK Mustafa&rsquo s commitment towards the completion of the SPA. To date, MK Mustafa has paid a deposit of RM80 million to CCPSB. By aggregating the amount of deposit paid and additional deposit to be paid, CCPSB would have received a total deposit of RM110 million from MK Mustafa, representing 29.9% of the purchase consideration of RM386 million. Based on the terms of the SPA, CCPSB would be entitled to forfeit the deposit paid by MK Mustafa and claim for remedies in the event of non-completion of the Waived CPs by MK Mustafa.