KUALA LUMPUR (Nov 21): Atlan Holdings Bhd's (KL:ATLAN) Singapore-listed subsidiary Duty Free International Ltd (DFIL), which plans to challenge the compulsory acquisition of two plots of land in Kedah by the Malaysian government, announced on Thursday that it had received RM69.6 million as compensation for the land.

The sum was received from the Home Affairs Ministry, which is force-buying the plot from DFIL's wholly-owned Cergasjaya Sdn Bhd and Cergasjaya Properties Sdn Bhd, on Monday (Nov 18).  DFIL itself is 75.53% owned by Atlan.

DFIL had previously said in a bourse filing with the Singapore Exchange that it would accept the award of the compensation under protest as it is not satisfied with it, and that it would file an objection by way of a land reference to the High Court.

The company is still in the process of filing an objection by way of a land reference to the High Court in accordance with the Land Acquisition Act 1960 of Malaysia, DFIL said in its latest filing on Thursday.

"Hence, the company is unable to quantify the financial impact of the compulsory land acquisition until the conclusion of the land reference in the High Court. The company will make further announcements as and when there are material updates or developments in relation to the foregoing," DFIL said in its latest filing on Thursday, while reminding shareholders and potential investors to exercise caution when dealing in its shares in the meantime.

A compulsory acquisition of land refers to a process by which the government acquires from private landowners their land, which is needed for any public purpose or for a purpose beneficial to the economic development of Malaysia.

The plots were acquired by the ministry for a new road alignment to connect the Bukit Kayu Hitam Integrated Customs, Immigration, and Quarantine (ICQS) Complex to the CIQ Sadao facility in Thailand.

Atlan shares closed unchanged at RM2.75 on Thursday, with a market capitalisation of RM698 million.