Debt-ridden Perak Corp Bhd and its holding company, Perbadanan Kemajuan Negeri Perak (PKNP), have signed a master agreement outlining the conditions of several development projects the two parties will be pursuing.
The projects include the joint development of 56.3 acres of land in Teluk Dalam, a district of Lumut, the future joint development of the hinterland for the Lumut Maritime Terminal, and the appointment of Perak Corp. as the master developer for a portion of the SilverValley Technology Park (SVTP) landbank in Hulu Kinta.
Perak Corp will also be granted development rights for 43.79 acres of land at Bandar Meru Raya in the Kinta district for housing projects.
The initiatives are part of the Practice Note 17 (PN17) company's plan to regularise its financial condition after being classified as an affected issuer in February 2020, the company said in a filing on March 31.
Perak Corp said the development initiatives which are an integral part of the proposed regularisation plan are anticipated to be a catalytic component for direct foreign and domestic investment for Perak and spur the economic activities and growth in the areas of port and logistics, hospitality, tourism, industrial and property development, which are its main businesses.
It said through these development Initiatives, the company will be in a better position to strengthen its asset holding and its core businesses and return to profitability.
"Save for Datuk Redza Rafiq Abdul Razak and PKNP, none of the directors and/or the other major shareholder of Perak Corp and/or any persons connected to them have any interest, direct or indirect, in the agreement," said Perak Corp.
It said that Redza Rafiq, who is deemed interested in the deal by him acting as a nominee of PKNP on the board of Perak Corp, will continue to abstain from all deliberations at the board meetings in respect of the agreement.