Company Name: KOBAY TECHNOLOGY BERHAD
Stock Name: KOBAY
Date Announced: 23 Dec 2015
Category: General Announcement for PLC
Reference Number: GA1-23122015-00089
Description: Deed of Rescission and revised Joint Venture Agreement with Option to Purchase entered into by a wholly owned subsidiary
Further to our announcement of the above reference : GA1-22122015-00084, the Board of Directors of Kobay Technology Berhad (“Kobay” or “the Company”) wishes to announce that the Deed of Rescission and revised Joint Venture Agreement with Option to Purchased (“revised JVA with OTP”) were entered into by its wholly owned subsidiary company, Kobay Project Venture Sdn. Bhd. (“KPV”) to rescind the initial Joint Venture Agreement with Option to Purchase (“initial JVA with OTP”) signed by KPV on 16 February 2015 due to one of the landowners, Nooraziah Binti Zainul Abidin (“NZZA”) has passed away on 6 August 2015 before the titles to the Lands be able to be transferred/transmitted.
Save for the below items/terms for which have been varied/revised, the remaining terms and conditions therein stipulated in the initial JVA with OTP are remain unchanged in the revised JVA with OTP.
Rationale of entering into the revised JVA with OTP
It is the Group’s strategy to diversify into other industries and the Lands are located at the strategic location with development potential which can contribute positively to the Group’s future earnings, hence, the Board of Directors was in the view that it is feasible for KPV to undertake the development project and enter into the revised JVA with OTP and Deed of Rescission.
This announcement is dated 23 December 2015.