Termination of Management Agreement

RNS Number : 7111T

Aseana Properties Limited

22 March 2019

 

Aseana Properties Limited

("Aseana" or the "Company")

Termination of Management Agreement

Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam listed on the Main Market of the London Stock Exchange, announces that Ireka Development Management Sdn Bhd ("IDM"), the current Development Manager for ASPL, has on 21 March 2019 submitted a notice to terminate its appointment under the Management Agreement. As Development Manager, IDM is responsible for the day-to-day management, enhancement and divestment of ASPL's property portfolio.

IDM is a wholly-owned subsidiary of Ireka Corporation Berhad ("ICB") which holds 23.07% of ASPL's issued share capital.

IDM advised the Board that it decided to vacate its role as ASPL's Development Manager to avoid any perception of conflict between IDM's role as Development Manager and ICB's position as a substantial shareholder of ASPL. IDM has further explained to the Board that in a recent discussion with a significant shareholder of ASPL, IDM became aware that some shareholders might perceive ICB's interests in the divestment of ASPL's property portfolio not to be aligned with the other shareholders.

Unless otherwise agreed, IDM's resignation is subject to a three months' notice period which will enable the orderly transition of operations currently carried out by IDM to ASPL itself or to third parties.  Following the termination, IDM has indicated that it would be prepared to work with the Board to facilitate a smooth and orderly transition of the operations of ASPL.

Given that ASPL is currently in a divestment mode, the main executive functions are to ensure the maintenance, preservation and enhancement of the Company's assets pending their disposals. The Board will be deliberating on the various options available to it in managing the executive functions and administrative functions of ASPL including to identify a replacement for the Development Manager, to identify and appoint senior executives to oversee the operations of ASPL, and also to identify and appoint divestment specialists to lead the orderly disposal of the assets.

The Board expects to put in place and effect changes before the transition period expires, and will make further announcements as soon as decisions have been made.  

For further information:

Aseana Properties Limited		Tel: [phone]
Chan Chee Kian		Email: [e-mail]
N+1 Singer		Tel: [phone]
James Maxwell / James Moat (Corporate Finance) Sam Greatrex (Sales)
Tavistock Communications		Tel: [phone]
Jeremy Carey / James Verstringhe		Email: [e-mail]

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer investing in Malaysia and Vietnam.

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 52 years of experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the divestment of existing properties.

 

END

 

 

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