KUALA LUMPUR (Aug 21): Construction firm FBG Holdings Bhd (KL:FBG), formerly known as Fajarbaru Builder Group Bhd, is seeking to withdraw from the joint development of the Medi-City project in Batu Kawan, Penang.
Its wholly-owned subsidiary FBG Land Sdn Bhd has written to the Penang Development Corp (PDC) to cease proceeding with the collaboration under a master purchase and development agreement (PDA) entered into by FBG, FBG Land and PDC, the company said in a bourse filing on Friday.
“FBG is proposing that the parties discuss an orderly conclusion of the existing collaboration under the master purchase and development agreement,” it said.
FBG Land and PDC are currently discussing the cessation, with FBG saying it will make further announcements on any material developments or once the parties agree on the terms and conditions.
The PDA for the first phase of the Penang Medi-City project was inked in January 2025.
The project, spanning 235.8 acres, is a proposed comprehensive development incorporating healthcare and wellness into residential, retail, and commercial components.
Under the PDA, FBG was to acquire Parcel 1 of the project, measuring about 51.2 acres in Bandar Cassia, for RM111.5 million. The development of Parcel 1 was projected to have a gross development value of RM2 billion over eight years.
FBG had also undertaken a three-for-four rights issue with free warrants at 18 sen per rights share to fund the land acquisition for the project.
In December last year, 304.995 million rights shares, 101.67 million Warrants D and 23.51 million additional Warrants C were issued, raising RM54.9 million.
Shares of FBG ended unchanged at 11 sen on Friday, valuing the company at RM110.65 million.