Frencken Group's subsidiary inks SPA with CIMB Islamic Trustee Berhad
The latter will shell out S$16,633,000.
The Board of Directors of Frencken Group Limited announced that its wholly-owned subsidiary, Precico Electronics Sdn Bhd, has on 22 April 2013 entered into a Sale and Purchase agreement with CIMB Islamic Trustee Berhad.
The SPA is in connection with a proposed sale and leaseback arrangement with respect to the Vendor’s properties located in Penang, Malaysia
The Properties consist of four (4) pieces of leasehold land at Lots PT 1559, PT 1573, PT 1574 and PT 1576, Mukim 01, Daerah Seberang Perai Tengah, Pulau Pinang, Malaysia.
The Properties have an aggregate land area of approximately 46,842 square metres and comprises three industrial buildings with ancilliary office space. The leasehold estates held by the Vendor in respect of the Properties arefor terms of 60 years expiring on 24 June 2046, 14 July 2046, 11 August 2046 and 11 August 2046 respectively.
PROPOSED SALE AND LEASEBACK
Under the SPA, the total consideration payable by the Purchaser for the Proposed Sale of the Properties is RM41,636,090 (approximately S$16,633,000).
The Sale Consideration was arrived at on a willing-buyer willing-seller basis after arm's length negotiations between the Vendor and the Purchaser and after taking into account various commercial factors including the prevailing market conditions and the location of the Properties.
Based on the valuation of the Properties carried out by an independent property valuer, C H Williams Talhar & Wong Sdn Bhd on 19 April 2013, the open market value on a “as is where is basis” of the Properties is RM33,540,000 (approximately S$13,399,000).
