Published: Thursday April 18, 2013 MYT 12:17:00 PM

PNSB clears air over Dijaya land deal

By Fintan Ng

KUALA LUMPUR: Permodalan Negeri Selangor Bhd (PNSB) has cleared the air over the land deal with Dijaya Corporation Bhd over the latter's acquisition of about 1,172 acres of prime development land in Canal City, Selangor.

Its chief executive officer Datuk Ahmad Omar said on Thursday that the multi-billion ringgit deal was legal despite that the agreement was signed after dissolution of Selangor state assembly

He also said the Selangor Menteri Besar, Tan Sri Abdul Khalid Ibrahim, was misquoted as saying the agreement was not set in stone.

On April 15, Dijaya entered into an agreement to acquire the land from PNSB for about RM1.3bil via a deferred payment method which spans over a period of up to 20 years.

The purchase consideration comprised of land purchase price of RM587mil, interest cost, share of gross development value (GDV) and profit entitlement from the development of the land.

At the signing of the agreement, Dijaya had stated this land development through smart partnership with PNSB was expected to contribute significantly to the group's prospects in the coming years.

Dijaya would progressively fund the acquisition and development cost via internally generated funds and bank borrowings.

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