Duty-free retailing group Duty Free International 5SO Limited has received a notice of compulsory land acquisition for several of its land lots in Malaysia, according to an Oct 3 release.
The land lots are currently owned by the group’s wholly owned subsidiaries, Cergasjaya and Cergasjaya Properties.
The acquisition comprises Lot 1683 Bukit Kayu Hitam and PT2209 Bukit Kayu Hitam, which are both situated in Kubang Pasu District, Kedah.
The acquiring agency for the compulsory land acquisition is the Ministry of Home Affair of Malaysia and will be administered by the Department of Director General of Lands & Mines, Kedah. The latter has since announced that a road construction project is required to connect the Bukit Kayu Hitam ICQS Complex in Kedah to the CIQ Sadao facility in Thailand.
As a result, the group says the acquisition will also affect adjacent lands which "access will be blocked by the new road alignment”.
The compulsory land acquisition will cause a closure of the group’s duty-free business at Bukit Kayu Hitam, Kedah, Malaysia, reads the release.
See also: ZICO Capital will no longer sponsor Sinocloud after Feb 25
According to the group, Cergasjaya, the owner of the Duty-Free complex in Bukit Kayu Hitam, has contributed approximately 24% to the group’s revenue for the financial year ended Feb 29.
Further announcements on the financial impact of the acquisition to the group is expected to be announced upon completion.
Shares in Duty Free International Limited closed 0.7 cents lower, or down 8.97%, at 7.1 cents on Oct 3.
