KUALA LUMPUR (Jan 17): Property developer S P Setia Bhd announced today that S P Setia (Indonesia), Sime Darby Bhd and I&P Group Sdn Bhd have decided not to pursue the joint venture with Indonesia’s PT Hanson International Tbk to jointly develop an affordable housing project in Greater Jakarta, Indonesia.
In a filing with Bursa Malaysia today, the group said S P Setia, Sime Darby and I&P Group are exercising the right to terminate the Memorandum of Understanding (MoU) they had signed with Hanson International in accordance with the terms in the MoU, with immediate effect.
“The termination of the MoU does not have a material financial effect on the company,” it added.
No reason was given for the termination.
To recap, on Aug 2, the three Malaysian property developers entered into MoU with Hanson International.
To be built on a 500ha piece of land, the project was to have gross development value of 11.29 trillion rupiah (RM3.5 billion). The land was located in Maja, Tangerang, which is about 80km from Jakarta.
Under the MoU, Sime Darby, S P Setia and I&P would each own a 20% stake while the remaining 40% was to be held by PT Hanson. I&P Group Sdn Bhd is a wholly-owned subsidiary of Permodalan Nasional Bhd.
Shares in S P Setia closed up one sen or 0.31% at RM3.21, giving it a market capitalisation of RM9.16 billion.
Meanwhile, shares in Sime Darby closed up four sen or 0.47% at RM8.49, bringing it to a market capitalisation of RM57.81 billion. — theedgemarkets.com