Astral Asia explores RM233.57 million land disposal in Kuantan
Potential buyer HNG Capital has exclusivity for due diligence on the 2,433 acres, with the option to terminate the agreement over unsatisfactory findings.
A proposed transaction with HNG Capital Sdn Bhd could see Astral Asia Bhd sell 2,433 acres at Pahang’s Kuantan Hi-Tech Park for RM233.57 million. Astral Asia said its subsidiary, Astral Asia Plantation Sdn Bhd (AAP), had signed a memorandum of understanding (MOU) concerning the disposal.
The site represents about 25% of the group’s overall land area. The potential disposal could open the way for green energy projects, including solar farms.
Astral Asia’s bourse filing said HNG Capital’s due diligence rights are exclusive. Unsatisfactory findings would allow the prospective buyer to terminate the agreement.
The MOU requires an interim deposit from HNG Capital of RM2.34 million, representing 1% of the indicative price. The landowner’s solicitors would hold the payment as stakeholders, with a deadline of seven business days after execution of the MOU.
Another wholly-owned Astral Asia subsidiary, Tasja Development Sdn Bhd, is authorised under an active power of attorney from AAP to facilitate the proposed deal and negotiate on AAP’s behalf.
Managing director Lim Guan Shiun said the proposed sale would realise value from Astral Asia’s property portfolio and allow proceeds to be directed towards future land acquisitions. The group described the proposal as part of its strategy of monetising mature property assets and reinvesting in land.
