KUALA LUMPUR (Aug 8): Lion Industries Corp Bhd has scrapped its plan to acquire 80 acres of sub-divided leasehold agriculture land in Sepang for RM23 million.

The group said its wholly-owned subsidiary LLB Bina Sdn Bhd has signed a deed of mutual termination with the land owner, Premier Land Resources Sdn Bhd, to terminate the agreement in relation to the acquisition entered in January last year.

Premier Land will repay the purchase consideration to LLB Bina, added Lion Industries in a bourse filing on Tuesday (Aug 8).

“The board, having considered all aspects of the termination, is of the opinion that the termination is in the best interest of the company,” said Lion Industries, without elaborating further on why it is calling off the deal.

The group said the termination is not expected to have a material impact on its earnings for the year ending Dec 31, 2023 and its audited consolidated statement as at Dec 31, 2022.

At the time of announcing the deal, Lion Industries said it was acquiring the land as a strategic investment opportunity and to expand the group’s landbank for its property division.

Shares in Lion Industries finished unchanged at 30.5 sen on Tuesday, with a market value of RM215.43 million. The counter has fallen 21.79% year-to-date.