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Tuesday, 8 August 2017

(The Star) E&O shareholders approve RM766mil land sale to KWAP

PETALING JAYA: Eastern & Oriental Bhd’s (E&O) shareholders have approved the disposal of a portion of the company’s Seri Tanjung Pinang phase 2 (STP2) project to Kumpulan Wang Persaraan (Diperbadankan) (KWAP) for RM766mil.

In a statement, E&O said the approval was obtained at its EGM yesterday and covered the sale of 20% of net development land measuring 1.45 million sq ft of Phase 2A of STP2 (STP2A).

The company said STP2A, the first phase of the 760-acre STP2 reclamation project on the northeast coast of Penang island, will be reclaimed and developed by subsidiary Tanjung Pinang Development Sdn Bhd. STP2A has a total gross area of approximately 250 acres.

Pursuant to the terms of the reclamation contract and barring any unforeseen circumstances, E&O managing director Kok Tuck Cheong expects works to be completed within the second half ofnext year.

“We are targeting a first launch at STP2A in 2019, marking a significant new chapter in the E&O group’s vision of creating an exemplar integrated masterplanned development – one that takes pride in what has been achieved in Seri Tanjung Pinang Phase 1, that serves as a ready benchmark for innovation and standards to be elevated at STP2,” he said in a statement.

On March 30, E&O and KWAP signed a RM887.6mil deal that would see KWAP pay RM766mil for the 20% stake in the former’s STP2A. The remaining RM121.6mil will be via the issuance of new shares that will give KWAP an estimated 5.52% stake in E&O.