Aseana Properties Limited Termination of Management Agreement (7111T)
March 22 2019 - 5:05AM
UK Regulatory
TIDMASPL
RNS Number : 7111T
Aseana Properties Limited
22 March 2019
Aseana Properties Limited
("Aseana" or the "Company")
Termination of Management Agreement
Aseana Properties Limited (LSE: ASPL), a property developer in
Malaysia and Vietnam listed on the Main Market of the London Stock
Exchange, announces that Ireka Development Management Sdn Bhd
("IDM"), the current Development Manager for ASPL, has on 21 March
2019 submitted a notice to terminate its appointment under the
Management Agreement. As Development Manager, IDM is responsible
for the day-to-day management, enhancement and divestment of ASPL's
property portfolio.
IDM is a wholly-owned subsidiary of Ireka Corporation Berhad
("ICB") which holds 23.07% of ASPL's issued share capital.
IDM advised the Board that it decided to vacate its role as
ASPL's Development Manager to avoid any perception of conflict
between IDM's role as Development Manager and ICB's position as a
substantial shareholder of ASPL. IDM has further explained to the
Board that in a recent discussion with a significant shareholder of
ASPL, IDM became aware that some shareholders might perceive ICB's
interests in the divestment of ASPL's property portfolio not to be
aligned with the other shareholders.
Unless otherwise agreed, IDM's resignation is subject to a three
months' notice period which will enable the orderly transition of
operations currently carried out by IDM to ASPL itself or to third
parties. Following the termination, IDM has indicated that it would
be prepared to work with the Board to facilitate a smooth and
orderly transition of the operations of ASPL.
Given that ASPL is currently in a divestment mode, the main
executive functions are to ensure the maintenance, preservation and
enhancement of the Company's assets pending their disposals. The
Board will be deliberating on the various options available to it
in managing the executive functions and administrative functions of
ASPL including to identify a replacement for the Development
Manager, to identify and appoint senior executives to oversee the
operations of ASPL, and also to identify and appoint divestment
specialists to lead the orderly disposal of the assets.
The Board expects to put in place and effect changes before the
transition period expires, and will make further announcements as
soon as decisions have been made.
For further information:
Aseana Properties Limited Tel: +603 6411 6388
Chan Chee Kian Email: cheekian.chan@ireka.com.my
N+1 Singer Tel: 020 7496 3000
James Maxwell / James Moat (Corporate
Finance)
Sam Greatrex (Sales)
Tavistock Communications Tel: 020 7920 3150
Jeremy Carey / James Verstringhe Email: jeremy.carey@tavistock.co.uk
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) is a
property developer investing in Malaysia and Vietnam.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive
Development Manager for Aseana. It is a wholly-owned subsidiary of
Ireka Corporation Berhad, a company listed on the Bursa Malaysia
since 1993, which has over 52 years of experience in construction
and property development. IDM is responsible for the day-to-day
management of Aseana's property portfolio and the divestment of
existing properties.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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