Duty-free retailing group Duty Free International 5SO has released an update on the compulsory land acquisition for several of its land lots in Malaysia.
The group’s wholly-owned subsidiary, Cergasjaya Sdn Bhd, has received notices from the land administrator to take formal possession of Borang K and Borang L.
On Oct 3, the group announced that it had received a notice of compulsory land acquisition for several of its land lots in Malaysia by the Ministry of Home Affairs of Malaysia (KDN), comprising Lot 1683 Bukit Kayu Hitam and PT2209 Bukit Kayu Hitam.
As such, Cergasjaya is expected to cease its duty-free business at the Duty Free Complex and car park operations on Nov 25 Nov, and is set to vacate the premises.
The group says the DFI is in the process of filing an objection by way of a land reference to the high court in accordance with the Land Acquisition Act 1960 of Malaysia. The group is currently unable to quantify the financial impact of the compulsory land acquisition until the conclusion of the land reference in the high court, adds DFI.
Shares in Duty Free International closed 0.6 cents higher, or up 9.52%, at 6.9 cents on Nov 25.
