E&O subsidiary Tanjung Pinang Development's special resolution rejected by Islamic bondholders under RM1.5b scheme

KUALA LUMPUR (April 21): Holders of tranche one of Eastern & Oriental Bhd's (E&O) subsidiary Tanjung Pinang Development Sdn Bhd's RM1.5 billion Islamic bonds or sukuk have rejected a special resolution proposed by Tanjung Pinang Development in December 2021, according to the bond's facilitating agent RHB Investment Bank Bhd on Thursday (April 21, 2022).

"We refer to our announcement dated Dec 10, 2021. Please be informed that the special resolution circulated on Dec 9, 2021 was rejected by the sukukholders of tranche 1 [of the RM1.5 billion Islamic bonds]," RHB said in a filing with Bank Negara Malaysia's Fully Automated System for Issuing/Tendering (FAST) website.

RHB, however, did not specify details of the special resolution.

According to Tanjung Pinang Development's website, the company holds the concession rights to both phases of the Seri Tanjung Pinang (STP) reclamation project at the north-east coast of Tanjung Tokong in Penang.

The first phase (STP1) of the reclamation comprising 240 acres (96ha) was completed in 2006, according to the company.

Reclamation of the 760 acres under the second phase (STP2) which commenced in 2016 is underway, according to Tanjung Pinang Development.

"As a matter of background, 20 acres within the 240-acre STP1 were surrendered to the Penang state government for the Penang Outer Ring Road (PORR) alignment. These 20 acres will be replaced in STP2 and hence, the original acreage of STP2 (740 acres as per concession agreement) has been increased to 760 acres.

"Over and above the concession rights to reclaim the land for STP, Tanjung Pinang Development is also reclaiming at its own cost, 131 acres off the Gurney Drive foreshore for the Penang state government," Tanjung Pinang Development said.