KUALA LUMPUR: UEM Sunrise Bhd's second attempt to dispose its South Africa's unit has fallen through again as the buyer Azishe Properties Proprietary Ltd failed to fulfil its payment obligations within the stipulated time frame, according to its filing with Bursa Malaysia Securities.
In August last year, the property developer laid out plans to exit the South African market with the proposed disposal of its 80.4 per cent stake in Roc-Union Proprietary Ltd for RM29.5 million.
"The company wishes to announce that the seller (UEM Sunrise South Africa) has exercised its rights under the sale agreements to cancel the sale agreements effective immediately and discontinue the proposed divestment as the purchaser (Azishe) has failed to honour its obligations to make payment in accordance with the payment plan stipulated under the sale agreements, which therefore is in breach of the sale agreements," UEM Sunrise said.
In the previous filing, UEM Sunrise South Africa entered sale agreements and claims of total shareholder advance worth 18.4 million rand (RM29.5 million) with Azishe for the proposed divestment in August last year.
UEM Sunrise said the proposed divestment aligned with its strategic turnaround plan, allowing it to realign its operations geographically and redirect resources to businesses and areas with greater potential.
UEM Surise last traded unchanged at RM1.18 a share.