The multi-billion ringgit Bandar Malaysia project is back to the drawing board again as the Restated and Amended Share Sale Agreement (RASSA) for the acquisition of 60% shares in Bandar Malaysia Sdn Bhd (BMSB) has lapsed on May 6, 2021.
In a joint statement, the Ministry of Finance (MoF) and IWH-CREC Sdn Bhd (ICSB) have mutually agreed to terminate the deal for the latter to buy a 60% stake in the Bandar Malaysia project that is located in the former Air Force base in Sungai Besi for RM7.4 billion, according to news report.
The deal for the sale of 60% shares of Bandar Malaysia to IWH-CREC was executed on Dec 17, 2019.
This was the second deal for Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) for the Bandar Malaysia project.
However, the Bandar Malaysia project is expected to resume at a later date, given the uncertainties brought about by the current COVID-19 pandemic outbreak, The Star cited a source as saying.
The source told the English daily that the deal was mutually terminated as the parties could not agree on the conditions precedent to proceed with the project.
“The project will continue but it is a matter of when and what is the next step to be taken by all the parties involved,” the source said as quoted by The Star.
It has been a long six-year journey for IWH-CREC to acquire a stake in the Bandar Malaysia project. This is the second time the agreement for the project lapsed, reported The Star.
The first deal was struck in December 2015, when IWH-CREC wanted to buy the 60% stake in the Bandar Malaysia project for RM7.41 billion from 1Malaysia Development Bhd (1MDB). However, the agreement lapsed after 16 months in May 2017.
A year later, after the change of government in the 14th General Election, IWH-CREC was back in the race and signed the restated and amended share sale agreement for the equity sale in December 2019.
After 17 months, the restated and amended SSA was mutually terminated.
Image source from Berita Harian