AFI Properties Ltd.

Legal Proceedings Report • Nov 30, 2020

National Storage Mechanism | Additional information

RNS Number : 8349G

Aseana Properties Limited

30 November 2020

30 November, 2020

Aseana Properties Limited ("Aseana" or the "Company")

Update on the demerger proposal and on the sale of two land plots in Kota Kinabalu

The Demerger proposal

Aseana Properties Limited (LSE: ASPL LN), a property developer in both Malaysia and Vietnam which is listed on the Main Market of the London Stock Exchange, entered into certain agreements on 15 July 2020 (the "Demerger Agreements") in relation to proposals to demerge certain assets held by the Company in exchange for the buyback and cancellation of a significant percentage of the issued ordinary shares of US$0.05 each in the capital of the Company (the "Shares"). Those Demerger Agreements set a long stop date of 14 October 2020 by which date the demerger needed to have been completed or the date reset by mutual agreement of all signatories. This date had been extended in a couple of stages to 27 November 2020.

Ireka Corporation Berhad ("Ireka"), one of the Participating Shareholders in the demerger held an Extraordinary General Meeting of its independent shareholders today and those shareholders approved the demerger which is a key condition of the demerger. However, another key condition to the demerger is the consent of the Company's lenders and the guarantors of Medium Term Notes to the demerger and these consents have yet to be obtained.    

Accordingly, Aseana and all the other parties to the Demerger Agreements have today signed addendums to the Demerger Agreements to extend the long stop date to 11th December 2020. It is hoped that the remaining consents and approvals can be obtained during this further extension period.

The sale of two land plots in Kota Kinabalu, Sabah, Malaysia

Aseana entered into two Sale and Purchase Agreements on 16 July 2020 to sell two adjacent plots of land in Kota Kinabalu to a party related to Ireka for a total cash consideration of approximately US$4 million. The Company has received cash deposits and a part of the balance of the proceeds have been used to pay down debt that is secured against those land plots. The sale of the land plots was independent of the demerger transaction and completion is pending release of the charges by the bank. 

For further information:

Aseana Properties Limited	Tel: +44 20 3325 7050
Nick Paris, Chairman	nickparis@btinternet.com
Liberum Capital	Tel: +44 20 3100 2000
Gillian Martin / Owen Matthews

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