SCIENTEX Bhd failed for the second time to purchase a big piece of land in Tebrau, Johor, from SP Setia Bhd for non-fulfilment of unspecified conditions, according to exchange filings by both corporations yesterday (Jan 5).

In July 2023, Scientex subsidiary Scientex Lestari Sdn Bhd entered into a sale and purchase agreement (SPA) with SP Setia subsidiary Pelangi Sdn Bhd to acquire the 960 acres (388.5ha) land for RM547.7 million.

The acquisition was part of Scientex’s strategy to expand its property development footprint in Johor, adding on to its six existing townships located in Pasir Gudang, Kulai, Skudai, Senai, Pulai and Kota Tinggi.

Scientex intended to launch a new mixed township development project on the land with an estimated 12,000 affordable homes to be built.

In its filing yesterday, Scientex said the proposed acquisition was terminated in view of the non-fulfilment of the conditions precedent within the extended CP period.

In its filing, SP Setia said the termination was due to ‘non-fulfilment of the condition precedent relating to the approval of the EPU [Economic Planning Unit] for the acquisition of the lands by Scientex Lestari’.

Scientex’s first attempt to acquire the parcels of land in May 2021 for RM518.1 million reportedly scrapped after it failed to obtain a waiver of the Bumiputera equity condition imposed by the EPU. – TMR