Hatten Land‘s wholly owned subsidiary Hatten MS has entered a termination agreement to unwind its acquisition of Velvet Valley, which owns the Unicity Project at Seremban Malaysia, the Singapore-listed company said in a filing to SGX Tuesday.
The company said it was pivoting away from being a property developer and mall operator.
“The termination agreement will allow the company to conserve cash, prioritising funds for the group’s new business initiatives in the digital economy which is in line with the group’s strategic pivot,” Hatten Land said in the statement.
“The group has recently completed a strategic review to respond to changes in the operating environment, including emerging trends associated with blockchain technology and digital economy as well as the renewable energy market,” the company added.
Hatten MS had agreed in 2018 to acquire Velvet Valley for 43 million ringgit from Dato’ Tan June Teng Colin @ Chen Junting, Dato’
Tan Ping Huang Edwin @ Chen Binghuang and Yap Wei Shen (Michelle Yap), the filing said.
Dato’ Colin And Dato’ Edwin are currently controlling shareholders of Hatten Land, and its managing director and deputy manager director, respectively, while Michelle Yap is not related to Hatten Land or hold any shares in it, the filing said.
So far, none of the consideration for the acquisition has been paid, as Hatten Land had been trying to conserve cash and working capital, and as the sale of units at Unicity Project were affected by the Covid-19 pandemic, which also weakened its financial performance, the filing said.
“Upon further deliberation and mutual discussion of the parties with regards to the acquisition, the parties hereby mutually agree to treat the acquisition as being frustrated,” the filing said.
Hatten MS was previously known as Sky Win Management Consultancy.
Melaka-based Hatten Land is a Malaysian property developer, specialising in integrated residential, hotel and commercial developments; it is the property development arm of property-to-retail-to education conglomerate Hatten Group.