We refer to our announcement dated 26 October 2018 in relation to the execution of the following agreements:

1. Shareholders’ Agreement dated 26 October 2018 between SunwayMas Sdn Bhd (“SunwayMas”) (a subsidiary of Sunway), Perkasa Bernas (M) Sdn Bhd (“Perkasa”) (a subsidiary of MKH Berhad) and Daksina Harta Sdn Bhd (“Daksina”) (a subsidiary of Sunway) in relation to the intention to jointly develop a mixed development on the freehold land held under Geran 47813, Lot No. 1, Mukim Kajang Daerah Ulu Langat Negeri Selangor measuring approximately 5.28 acres (“the Land”) as well as to regulate the relationship between SunwayMas and Perkasa as the shareholders of Daksina (“Proposed Joint Venture”); and

2. Share Sale Agreement dated 26 October 2018 between SunwayMas and Perkasa whereby SunwayMas agrees to dispose of 4 ordinary shares in Daksina to Perkasa (“Sale Shares”), representing 40% of the share capital of Daksina, at a total consideration of RM5,000,000/- (“Proposed Disposal”).    

We wish to further clarify as to the basis of the consideration of the Proposed Disposal. Both SunwayMas and Perkasa agree that the current market value of the Land is 15% of the estimated gross development value of the proposed development of RM540 million. The consideration is calculated based on the difference between the revalued land cost and the current net liabilities position of Daksina based on its latest audited financial statements for year ended 31 December 2017 and its latest management account dated 30 September 2018. The initial land acquisition by Daksina was fully financed by an inter-company loan.

This announcement is dated 29 October 2018.