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Tuesday, August 31, 2010

No decision on Menara Olympia

PETALING JAYA: Olympia Industries Bhd is yet to make a decision on the fate of its Menara Olympia property located along Jalan Raja Chulan in Kuala Lumpur following the decision by Jelita Timur Sdn Bhd to abort the acquisition.

Olympia’s corporate communications senior manager Jennifer Chow said in an email reply to a StarBiz query that the board of directors “has yet to make any decision following this announcement”.

The company had on Aug 26 received a letter from Jelita Timur, which highlighted the uncertainties over the acquisition, including the delay on Olympia’s part in obtaining the requisite approvals for the transaction.

Jelita Timur, in the letter, had also said that it was not prepared “under any circumstances” to proceed with the transaction at a higher consideration.

Following a second valuation of the property by Rahim & Co as directed by Bursa Securities, Olympia’s board had announced last Friday that the property was valued at RM228.1mil.

Collier, Jordan Lee & Jaffar Sdn Bhd valued the property at RM202.65mil in January, which was deemed low by analysts.

Olympia’s board said yesterday in an announcement that there was a unanimous agreement to mutually abort the transaction to avoid the possibility of being sued for specific performance and higher compensation sum for breach of obligations under the sale and purchase agreement (SPA), which was signed on April 9 and would fall due by Sept 9.

The board added that the timeframe for the completion of the SPA was unlikely to be achieved after taking into consideration the Sept 9 deadline and the uncertainties.

By The Star

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