PETALING JAYA, 14 June: Sunway Bhd is disputing a notice given by the Perak State government that a 19-year development agreement entered by both parties, had lapsed.
In a stock exchange filling yesterday, Sunway said its wholly owned unit, Sunway City (Ipoh) Sdn Bhd (SCI) received a letter dated June 9, 2016 from the Perak State Secretary informing that the development agreement signed on Sept 11, 2007 had lapsed.
The letter also requested SCI to return the undeveloped portion of the land to the state government.
“SCI shall dispute the notice and refer the matter to arbitration pursuant to the development agreement,” Sunway said.
SCI, a property development and investment holding company, has an authorised and paid-up capital of RM400 million and RM148.6 million respectively.
“The effect of the said notice is not expected to have any material effect on the earnings per share and net assets per share of Sunway for the financial year ending Dec 31, 2016 and beyond,” it said.