CEO Morning Brief

Nexgram Aborts Plan to Acquire Resort in Langkawi

Publish date: Fri, 10 Mar 2023, 08:50 AM
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TheEdge CEO Morning Brief
Nexgram aborts plan to acquire resort in Langkawi

KUALA LUMPUR (March 9): Nexgram Holding Bhd said it is aborting its plan to acquire a resort in Langkawi for RM90 million to be used as a healthcare service facility.

This comes after Nexgram and the vendors were unable to satisfy certain conditions precedent in the sale and purchase agreement, the group said in a bourse filing.

Nexgram had signed the agreement in September last year to acquire the 218-room Wings By Croske Resort Langkawi from Croske Hotels Sdn Bhd and Flyboys Club Sdn Bhd via the issuance of convertible preference shares.

The group intended to use the property as a healthcare service facility for its health and wellness treatments and services, in line with its expansion plans for its healthcare segment.

Nexgram had rented the property in the past to, among others, operate a Covid-19 test facility as part of Malaysia’s International Travel Bubble Programme in Langkawi.

Last month, Nexgram terminated another deal with Melaka Corporation pertaining to the acquisition of a 10-hectare piece of land in Melaka state for RM61.53 million.

Nexgram had proposed to utilise the land for a mixed development dubbed the 'Melaka Lifecare Specialist project'.

Shares in Nexgram ended unchanged at four sen on Thursday (March 9), giving the group a market capitalisation of RM18 million.

Source: TheEdge - 10 Mar 2023

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