Ho Hup seeking legal advice on civil suit

Tags: Bukit Jalil Development | Ho Hup Construction | Low Chee | Magna Prima

Written by Cindy Yeap

Tuesday, 18 August 2009 11:23

KUALA LUMPUR: Ho Hup CONSTRUCTION [] Co Bhd is seeking legal advice on a civil suit filed against it by a substantial shareholder over the sale of a land in Bukit Jalil to Santari Sdn Bhd for RM9.83 million.

The suit dated Aug 10, filed by Low Chee & Sons Sdn Bhd, was served on Ho Hup and its subsidiary Bukit Jalil Development Sdn Bhd (BJD) on Aug 12, Ho Hup said in a statement to Bursa Malaysia on Aug 14.

“The suit, if successfully proven in a court of law, has substantial financial impact on the company,” the statement read.

Ho Hup’s 70%-owned BJD had sold the 5.503 acre land in Bukit Jalil after the company received shareholder’s approval at an EGM on July 8. Ho Hup, in a circular to shareholders dated June 23, said the deal was not a related party transaction. As such all shareholders were allowed to vote at the EGM.

The Edge Weekly reported on July 18 that the same plot of land in Bukit Jalil sold by BJD to Santari is an integral part of MAGNA PRIMA BHD []’s proposal to buy a prime land in Jalan Ampang, near the Petronas Twin Towers, where the Lai Meng Girls’ School currently is.

In retrospect, property developer Magna Prima had in March said Lai Meng Girls’ School Association (LMGSA) had agreed to sell the land where the school is currently located for RM148.1 million cash.

Under the proposal, the deal is conditional upon the transfer of the piece of land in Bukit Jalil to LMGSA for the relocation of the school at no costs.

Twinicon (M) Sdn Bhd, a unit of Magna Prima, “shall cause the transfer of all the freehold land measuring 22,280 sq m held under geran 55267, Lot 38474, from BJD to land vendor (LMGSA)”, Magna Prima said in an announcement to Bursa Malaysia.

In the same report, The Edge Weekly also quoted Ho Hup’s managing director, Lim Ching Choy as saying: “As far as we are concerned, Ho Hup is selling the land to Santari (Sdn Bhd), a private company, which has no relationship with the directors and shareholders of Ho Hup,” says Lim. “What Santari wants to do with the land (in the future), we as the seller have no control over it,” the report quoted Lim as saying.

Lim also reportedly said the Ho Hup’s board was not notified of the land transfer arrangement between Magna Prima and Lai Meng. Notably, Magna Prima had named BJD in its statement to Bursa Malaysia when it announced its proposed land acquisition with LMGSA on March 23.

In defence of Ho Hup’s sale, Lim also reportedly highlighted that Ho Hup announced its proposal to sell the land to Santari on March 2, while Magna Prima revealed its land exchange deal with Lai Meng three weeks later.

Analysts bullish on Hartalega’s prospects< Prev		Next >AmResearch: Sunrise remains a buy with higher target price

Last Updated on Tuesday, 18 August 2009 11:24

Sorry, you cannot post a comment unless you are a registered user.

JComments

Categories

Other Publications & Pullouts