KUALA LUMPUR (April 16): Practice Note 17 (PN17) company Ivory Properties Group Bhd (KL:IVORY) has aborted its plan to dispose of a freehold land in Penang to Chin Hin Group Property Bhd (KL:CHINHIN).

The decision to cancel the deal follows the creditors’ voluntary liquidation of its subsidiary, Ivory Gleneary Sdn Bhd (IGSB), noted Ivory Properties in a filing with the exchange on Wednesday.

As IGSB is now under liquidation, its affairs are managed by appointed liquidators.

Ivory Properties noted that it is therefore required to concur with the liquidators’ decision to revoke the sale and purchase agreement between IGSB and Chin Hin Property (Penang) Sdn Bhd (CHPPSB) for the disposal of the land, as well as the exclusive right agreement involving Ivory Utilities Sdn Bhd (IUSB), BKG Development Sdn Bhd and CHPPSB, which was signed in January 2024.

The deal involves a 1.22-acre parcel of land, which forms part of the Penang Times Square development and was earmarked for a multi-storey residential project.

In a separate filing, Chin Hin said the revocation was due to IGSB’s intention to sell the land to a third-party purchaser.

As part of the revocation agreement, IGSB will ensure that the new purchaser pays RM2 million to CHPPSB as reimbursement and liquidated damages.

The personal guarantee issued by Ivory Properties Group CEO Datuk Low Eng Hock — which was meant to secure IGSB’s obligations under the sale and purchase agreement — will be released as part of the revocation process.

Shares in Chin Hin closed unchanged at RM2.13 on Wednesday, giving it a market capitalisation of RM1.41 billion. Ivory Properties closed unchanged at 2.5 sen, valuing the company at RM12.3 million.