KUALA LUMPUR: Magna Prima Bhd’s wholly owned subsidiary Magna Prima Australia Pte Ltd (Magna Australia) has been served with a rescission notice by Yucai Australia Pte Ltd.
In a filing with Bursa Malaysia, Magna Prima said its subsidiary was served with a rescission notice yesterday in view that Magna Australia had defaulted in the performance of its obligation under the contract by failing to pay the balance purchase consideration, the adjusted apportionable outgoings and the relevant interest payable to Yucai as stipulated by Oct 28.
On Aug 5, Magna Australia entered into a conditional contract of sale with Yucai to purchase a property for A$26 million in cash (RM84 million).
The said property is a 2,763-sq m freehold land held under Certificate of Title Volume 11145 Folio 423, together with improvements, including the development project thereon located on 218-236 A’Beckett Street, Melbourne, Australia.
Magna Prima said Yucai intends to exercise its rights under the contract unless the default is remedied within 14 days of the service of the notice and the legal cost of A$440 (inclusive of GST) and interest on the amount due at the rate of 16.5% per annum are all paid within the period.
“Unless the breach is remedied and interest and costs paid in accordance with the rescission notice, Yucai may exercise its rights under the contract, including without limitation, terminating the contract.
“The board of Magna Prima is currently deliberating on the next course of action and further announcement will be made in due course in relation to the proposed acquisition,” said the group.
This article appeared in The Edge Financial Daily, November 1, 2011.
In a filing with Bursa Malaysia, Magna Prima said its subsidiary was served with a rescission notice yesterday in view that Magna Australia had defaulted in the performance of its obligation under the contract by failing to pay the balance purchase consideration, the adjusted apportionable outgoings and the relevant interest payable to Yucai as stipulated by Oct 28.
On Aug 5, Magna Australia entered into a conditional contract of sale with Yucai to purchase a property for A$26 million in cash (RM84 million).
The said property is a 2,763-sq m freehold land held under Certificate of Title Volume 11145 Folio 423, together with improvements, including the development project thereon located on 218-236 A’Beckett Street, Melbourne, Australia.
Magna Prima said Yucai intends to exercise its rights under the contract unless the default is remedied within 14 days of the service of the notice and the legal cost of A$440 (inclusive of GST) and interest on the amount due at the rate of 16.5% per annum are all paid within the period.
“Unless the breach is remedied and interest and costs paid in accordance with the rescission notice, Yucai may exercise its rights under the contract, including without limitation, terminating the contract.
“The board of Magna Prima is currently deliberating on the next course of action and further announcement will be made in due course in relation to the proposed acquisition,” said the group.
This article appeared in The Edge Financial Daily, November 1, 2011.
