'Bandar M'sia SSA cancellation a commercial decision'
The termination of the share sale agreement (SSA) for the Bandar Malaysia development project was a commercial decision, said Deputy Prime Minister Ahmad Zahid Hamidi.
Additionally, the board of directors of TRX City Sdn Bhd made the decision to cancel the SSA because there was a breach in the terms of the contract when the purchasing parties failed to meet obligation payments which had been outstanding for more than 10 times.
"Bandar Malaysia must be built according to a specified period. We see this from the legal standpoint, effect of the delay, and the decision was made.
"For sure, the cancellation decision was 100 percent a commercial decision. It should be seen from the opportunity lost when the delay continued to happen," he said when asked to comment on the Bandar Malaysia SSA termination.
Ahmad Zahid, who is also home minister, said this when met by reporters after the Ministry of Home Affairs monthly gathering in Putrajaya today.
TRX City Sdn Bhd recently announced that the SSA with Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd involving the sale of 60 percent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd had lapsed due to the failure of the purchasing parties to fulfil payment obligations.
Bandar Malaysia, which will be developed under the public-private partnership model, is a township development project with an estimated cumulative gross development value of RM150 billion.
The long-term project is expected to be completed over the next 30 years.
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