KUALA LUMPUR: IOI Corp Bhd and Dutaland Bhd have agreed to mutually rescind the sale and purchase agreement (SPA) over the disputed RM830 million oil palm plantation deal.
IOI Corp said yesterday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all the issues and disputes relating to the SPA.
It added that with immediate effect, the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other.
IOI Corp said following the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon.
To recap, on Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.
However, in a separate statement, Dutaland said it did not accept the reasons for termination of the SPA and directed the stakeholder, OSK Trustees Bhd, not to remit the 10% deposit of RM83 million paid.
In a separate statement on Wednesday, Dutaland said that with the rescission, Sri Mayvin has retracted all its allegations and assertions made against Pertama Land as contained in Sri Mayvin’s letters dated Oct 4, 20 and the 21.
"Pursuant to the deed, Sri Mayvin has further confirmed that it has not lodged and will not lodge any private caveat(s) or any encumbrances(s) over the properties," it said.
Dutaland also said its board having sought legal advice and after taking into consideration all relevant aspects of the termination of the SPA, was of the view that protracted litigation would hinder any future sales of the properties.
"Furthermore, the outcome of litigation can be uncertain and this may have adverse implications on the group. In the meantime, the group shall continue to manage the properties to generate positive returns," it added.
This article appeared in The Edge Financial Daily, November 10, 2011.
IOI Corp said yesterday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all the issues and disputes relating to the SPA.
It added that with immediate effect, the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other.
IOI Corp said following the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon.
To recap, on Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.
However, in a separate statement, Dutaland said it did not accept the reasons for termination of the SPA and directed the stakeholder, OSK Trustees Bhd, not to remit the 10% deposit of RM83 million paid.
In a separate statement on Wednesday, Dutaland said that with the rescission, Sri Mayvin has retracted all its allegations and assertions made against Pertama Land as contained in Sri Mayvin’s letters dated Oct 4, 20 and the 21.
"Pursuant to the deed, Sri Mayvin has further confirmed that it has not lodged and will not lodge any private caveat(s) or any encumbrances(s) over the properties," it said.
Dutaland also said its board having sought legal advice and after taking into consideration all relevant aspects of the termination of the SPA, was of the view that protracted litigation would hinder any future sales of the properties.
"Furthermore, the outcome of litigation can be uncertain and this may have adverse implications on the group. In the meantime, the group shall continue to manage the properties to generate positive returns," it added.
This article appeared in The Edge Financial Daily, November 10, 2011.
