IWH CREC Sdn Bhd’s (ICSB) Tan Sri Lim Kang Hoo is disputing the termination by TRX City Sdn Bhd, an entity under the Finance Ministry, the agreement for the consortium to be the master developer of Bandar Malaysia.
A few hours after the termination notice on Thursday, ICSB issued a statement saying that it took the development very seriously and together with its advisers and legal counsel were reviewing the content of the termination notice.
It also said that it was very concerned with the content of the termination notice, “which given the factual matrix, does not fully and accurately reflect the circumstances and conduct of the parties in this matter”.
It said a further announcement would be made in due course. And as it promised, at 5pm yesterday, it issued another more detailed statement.
At that point, the jury was out as to what Lim’s next move would be. He is the major owner of Iskandar Waterfront Holdings Sdn Bhd (IWH) that had inked a joint venture with China’s China Railway Engineering Corp (M) Sdn Bhd (CREC) which won a bid in December 2015 to acquire 60% of Bandar Malaysia for RM7.41bil.
Some industry observers say that Lim may back out of a full-on legal tussle with TRX City. That’s because a lot of his businesses rely on government approvals. Lim’s companies have won many government-issued construction contracts, land privatisation deals and own highway concessions, among others.
But yesterday, ICSB had this to say:
“After a detailed and thorough review of ICSB’s and TRX’s respective obligations under the share sale agreement (SSA), including the agreed process and milestones with regard to fulfilment and relevant records, ICSB is of the view that TRX’s allegation that the SSA has lapsed, runs contrary to the conduct of the parties in progressing the SSA towards its completion in accordance with the spirit of the SSA.”
Prior to ICSB’s receipt of the TRX letter, ICSB had said that TRX was aware that ICSB had complied with the conditions precedent, and accordingly, the SSA had become unconditional.
ICSB has officially requested TRX for the completion of the SSA.
“To date, ICSB has fulfilled all the required payment obligations under the SSA on its part towards TRX. ICSB has sufficient financial resources and capabilities to ensure the smooth and successful execution and implementation of the development of Bandar Malaysia.
“ICSB has written to TRX to express that TRX’s unilateral declaration that the SSA has lapsed is unacceptable.
“ICSB reserves all its rights in this matter,” it said.