KUALA LUMPUR (Aug 12): Binasat Communications Bhd (KL:BINACOM), in which businessman Datuk Eddie Ong holds a 29.82% stake, has terminated a RM73.54 million deal to buy 241 units of fully furnished hotel suites in Empire City, Damansara Perdana, from Cosmopolitan Avenue Sdn Bhd.

The termination comes after Binasat obtained a fourth extension in May to settle its outstanding cash payment obligations relating to two acquisitions. Binasat intended to buy the hotel suites in Empire City for RM73 million and shop offices valued at RM8.34 million in Sazean Business Park in Klang, according to a bourse filing on Wednesday. 

The deadline was extended to Aug 16 from May 17, with RM22.29 million still outstanding out of the RM33.83 million cash payment obligation at the time.

Binasat said in the bourse filing it will receive a refund of RM32.19 million, and the sum will be utilised for its new businesses and/or other purposes.  

The refund comprises RM29.19 million in aggregate consideration paid by Binasat’s 70%-owned unit Binasat Digital Sdn Bhd towards the acquisition to date and RM3 million in costs and expenses incurred by the group in connection with the acquisition.

Notably, Hextar group is one of the shareholders of Empire City Damansara Mall there. Hextar Healthcare Bhd (KL:HEXCARE) owns a 20% equity interest, while Alliance Premier Sdn Bhd controls 60%. The joint venture between EXSIM Holdings Sdn Bhd and JT Momentum Sdn Bhd owns the remaining 20%. 

Binasat noted that it raised RM11.5 million from a private placement for the acquisition. Consequently, it needs to seek shareholders’ approval regarding the amount refunded. 

Pending shareholders' approval, the company said the total refund of RM21.83 million will be held by its solicitors as stakeholder in an interest-bearing account.

Binasat's share price closed up half a sen or 6.67% at eight sen on Wednesday, giving the group a market capitalisation of RM48 million.