DRB-HICOM clarifies The Verge price tag

DRB-HICOM Bhd has clarified that the price tag of The Verge commercial development in Singapore of S$189.75 million (S$1 = RM3.02) is not 40 per cent below the earlier aborted deal of S$317 million.

In a filing to Bursa Malaysia today, DRB-HICOM said, the indicative purchase consideration under the aborted sale to Evolutyon Real Estate Investment Holding Pte Ltd of S$317 million was prior to the agreed adjustments which comprised the redemption of Corwin Holding Pte Ltd's outstanding loan facility amounting to S$85.52 million.

It said under the current transaction announced on Sept 22, which involved selling The Verge to Singapore firm, Columba Holdings Pte Ltd, the said loan facility would remain in Corwin.

DRB-HICOM Group Managing Director, Datuk Seri Syed Faisal Albar, said in this regard, the appropriate comparison should be drawn from net sale proceeds, which were S$210.08 million against S$189.75 million, a lower difference of 9.67 per cent.

"Hence, we wish to deny the statement that the current transaction is lower than the aborted sale by 40 per cent as quoted by the media," he said.