KUALA LUMPUR: Supermax Corp Bhd’s unit Maxter Glove Manufacturing Sdn Bhd (Maxter) has scrapped its plan to acquire two parcels of land from S P Setia Bhd’s subsidiary, Bandar Setia Alam Sdn Bhd.

       In a filing with Bursa Malaysia, Supermax said the proposed acquisition of the land by Maxter was subject to and conditional upon obtaining Economic Planning Unit’s (EPU) approval. It noted that the total deposit, including the stamp duty, was duly refunded to the company on Jan 27, 2022, and the caveat on the two land parcels has been withdrawn effective Jan 31.

       In September 2020, Supermax announced that Maxter had entered into a sales and purchase agreement (SPA) to acquire the two pieces of land for RM73.49mil for the construction of Maxter’s operations headquarters.

       “The EPU approved the transfer of ownership of the lands on March 30, 2021, subject to meeting the 30% bumiputra equity ownership before the ownership of the land can be transferred.

       “On May 24, 2021, Maxter submitted an appeal to waive the EPU approval condition, however, on Dec 15, 2021, the EPU rejected the appeal for exemption,” it said.

       As such, Maxter had requested for the termination of the SPA in accordance with Clause 2A.4 of the agreement, which states that the purchaser is entitled to terminate the agreement if the EPU conditions, after appeal, is not acceptable to the purchaser.

       Supermax said the termination of the proposed acquisition does not have any material effect on the earnings per share, net assets per share and gearing of the company for the financial year ending June 30, 2022. — Bernama