1. Introduction

We refer to our announcements dated 1 August 2017 and 17 August 2017 in relation to the proposed acquisition of the following parcels of land by Sunway Supply Chain Enterprise Sdn Bhd (“SSCE”), a subsidiary of Sunway from Premier Place Property Sdn Bhd (Company No. 1074765-V) (“PPP”), a wholly-owned subsidiary of JAKS Resources Berhad (Company No. 585648-T) at a total purchase consideration of RM167,589,760/- (excluding Goods and Services Tax) (“Proposed Land Acquisition”):

(i) Geran Mukim 85 Lot 526, Tempat Sungei Penaga, Mukim Damansara, Daerah Petaling, Negeri Selangor measuring approximately 1.214 hectares or 130,673.87 square feet (“Land 1”);

(ii) Geran Mukim 84 Lot 527, Tempat Sungei Penaga, Mukim Damansara, Daerah Petaling, Negeri Selangor measuring approximately 1.214 hectares or 130,673.87 square feet (“Land 2”);

(iii) Geran Mukim 83 Lot 528, Tempat Sungei Penaga, Mukim Damansara, Daerah Petaling, Negeri Selangor measuring approximately 1.214 hectares or 130,673.87 square feet (“Land 3”); and

(iv) Geran Mukim 319 Lot 62506 Tempat Sungei Penaga, Pekan Subang Jaya, Daerah Petaling, Negeri Selangor measuring approximately 2.346 hectares or 252,553.63 square feet (“Land 4”)

(“Land 1, Land 2, Land 3 and Land 4 shall collectively be referred to as “the Lands”).

The Board of Directors of Sunway wishes to announce that SSCE had on 1 February 2018 entered into a supplemental agreement with PPP (“Supplemental Agreement”) to vary and amend certain terms and conditions of the sale and purchase agreement dated 17 August 2017 in relation to the Proposed Land Acquisition. 

2. Details of the Supplemental Agreement

It has come to the attention of SSCE that the respective areas of Land 1, Land 2 and Land 3 may not be in accordance with the details as specified in the issue documents of title of Land 1, Land 2 and Land 3 respectively.  In particular, PPP and SSCE agree that part of the major road known as Persiaran Subang 1 is situated on part of Land 1, Land 2 and Land 3.  The aggregate area of the affected portions is approximately 49,857 square feet (the “Affected Portions”).  PPP is using its best endeavors to obtain a written confirmation from the relevant authorities to confirm the actual areas of Land 1, Land 2 and Land 3 in order to resolve the uncertainty (“Written Confirmation from Authorities”).

Pending the issuance of the Written Confirmation from Authorities, the parties agree, inter alia, that a total sum of RM13,000,000/- (“Escrow Amount”) and estimated expenses of RM780,000/- (“Estimated Expenses”) out of the balance purchase price shall be deposited with SSCE’s solicitors to hold as stakeholders in an interest bearing account on or before the completion date or the expiry of the extended period as mutually agreed by the parties, as the case may be.   The Escrow Amount and Estimated Expenses will be dealt with after the issue documents of title for Land 1, Land 2 and Land 3 are extracted from the relevant Land Registry following the registration of the transfer in favour of SSCE.

3. Documents available for inspection

The Supplemental Agreement is available for inspection at the registered office of Sunway at Level 16, Menara Sunway, Jalan Lagoon Timur, Bandar Sunway, 47500 Subang Jaya, Selangor Darul Ehsan during normal business hours (9.00 a.m. to 6.00 p.m.) from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement.

This announcement is dated 2 February 2018.