An update on what is happening to the RM1.1bn which PDC is supposed to receive from the sale of 103 acres of Bayan Mutiara super prime land to Ivory Properties.
A second three-month extension for the payment of the first instalment was approved by PDC on 3 February to allow more time for Ivory to fulfil “conditions precedent”. As you can see, Ivory is requesting a reduction of the interest due to PDC.
The following was announced to Bursa by OSK Investment Bank Bhd.
Announcement Details/Table Section :
We refer to the announcements on 11 November 2011, 5 December 2011, 30 December 2011, 6 January 2012, 9 January 2012, 30 January 2012 and 8 February 2012 in relation to the Proposals.
Amongst the terms of the PDA and the supplemental letter dated 11 November 2011, Ivory is subject to the following:-
(i) obtaining the approval of its shareholders within three (3) months from the date of the PDA; and
(ii) to pay RM88,235,136 (“Balance Instalment”) within three (3) months from the date of the PDA.
As at the date of this announcement, Ivory has yet to dispatch its circular to shareholders as it has received the approval from Bursa Securities on 3 February 2012. Further, the payment to PDC is still pending as the approval from Ivory’s shareholders is one of the condition precedents for the drawdown of its financing facilities.
On behalf of the Board, OSK wishes to announce that Ivory had, on 3 February 2012, received the approval for extension of time until 10 May 2012 from PDC for the following:-
(i) to obtain its shareholder’s approval for the Proposed PDA; and
(ii) to pay the Balance Instalment.
The above extension of time is subject to interest. Any interest not accrued will be refunded to Ivory free of interest within fourteen (14) days after PDC’s receipt of the respective payments. Ivory is appealing to PDC to reduce the said interest.
This announcement is dated 8 February 2012.
This is the second extension after the state agreed to an initial extension in November 2011 with interest at 8 per cent p.a.
And these are the conditions for the initial extension:
It is clear that the state has not yet collected the first instalment of RM109m. So where did the state get the RM500m from, when it presented the mock cheque for the housing development board? A pre-general election stunt?
Ivory won the contract with PDC and then entered into a joint venture with Dijaya Corporation. Vincent Tan’s brother Danny has a 31 per cent stake in Dijaya, according to the firm’s 2010 Annual Report.
PDC should never have sold this land lock, stock and barrel to a private developer. Instead, it could have sold a small part of it and used the funds raised to provide social amenities, a large public park and affordable housing. You cannot put a price on such things.