ENRA Group Berhad Annual Report 2018

130 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) NOTES TO THE FINANCIAL STATEMENTS 31 March 2018 cont’d 44. SUBSEQUENT EVENTS AFTER THE END OF THE REPORTING PERIOD (a) On 8 March 2017, ENRA Labuan Sdn. Bhd. (“ELSB”) had entered into a conditional Sale and Purchase Agreement (“SPA”) with Perbadanan Labuan (“Vendor”) in respect of the proposed purchase of leasehold land (yet to be reclaimed from the shore lines) measuring approximately 24.28 hectares (approximately 60 acres or 242,811 square metres) (“Parcel 1”) with a call option to purchase additional leasehold land (yet to be reclaimed from the shore lines) measuring approximately 56.66 hectares (approximately 140 acres or 566,589 square metres) (“Parcel 2”), held under title particulars Pajakan Negeri No. Hakmilik 11169, Lot 30648, Daerah Wilayah Persekutuan Labuan, Negeri Wilayah Persekutuan Labuan measuring approximately 80.94 hectares (approximately 200 acres or 809,400 square metres) located at the waterfront industrial zone of Kampung Rancha-Rancha, Wilayah Persekutuan Labuan (“Land”). The purchase price for Parcel 1 is RM7,570,000 (“Parcel 1 Acquisition”) satisfied in cash in the following manner: (i) RM252,000 has been paid prior to the execution of the SPA; (ii) RM227,000 equal to 3% of the purchase price shall be paid to the Vendor’s solicitors as stakeholder upon execution of the SPA as retention sum to deal with in accordance with the provisions of the SPA and the Real Property Gains Tax Act 1976; (iii) RM278,000 shall be paid to the Vendor’s solicitors as stakeholders upon execution of the SPA to deal with in accordance with the provisions of the SPA; and (iv) RM6,813,000 equal to 90% of the purchase price shall be paid to the Vendor’s solicitors as stakeholders within 4 months from the date all conditions precedent have been fulfilled or waived, as the case may be, to deal with in accordance with the provisions of the SPA. The SPA is conditional upon the following conditions precedent being fulfilled within 9 months after the date of the SPA i.e. by 8 December 2017 or such later date as may be mutually agreed by the parties: (i) The approval of the Land Registry for the sub-division of the Land and the separate issue documents of water title to Parcel 1 and Parcel 2 having been obtained and received respectively by the Vendor; (ii) Any consents and/or approvals required from any appropriate authority for the sale and/or transfer of Parcel 1 to ELSB including the approval from the Jawatankuasa Kerja Tanah Wilayah Persekutuan Labuan for the said transfer having been obtained by the Vendor; (iii) The Vendor having complied with all conditions imposed by any appropriate authority in granting any consents and/or approvals for the sale and/or transfer of Parcel 1 to ELSB; (iv) Completion of all due diligences as required by ELSB including but not limited to financial, legal, tax, environmental, technical and business and land due diligences and ELSB being satisfied with the results of such due diligences; and (v) The approval if any, and as required from the shareholder of ELSB for the purchase of Parcel 1 having been obtained.