Business
Termination of Management Agreement
Termination of Management Agreement.
About this update from Aseana Properties Limited
[{"type":"text","content":"\n \nRNS Number : 7111T Aseana Properties Limited 22 March 2019 \n\nAseana Properties Limited \n(\"Aseana\" or the \"Company\")\n \nTermination of Management Agreement \n \nAseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam listed on the Main Market of the London Stock Exchange, announces that Ireka Development Management Sdn Bhd (\"IDM\"), the current Development Manager for ASPL, has on 21 March 2019 submitted a notice to terminate its appointment under the Management Agreement. As Development Manager, IDM is responsible for the day-to-day management, enhancement and divestment of ASPL's property portfolio.\n \nIDM is a wholly-owned subsidiary of Ireka Corporation Berhad (\"ICB\") which holds 23.07% of ASPL's issued share capital.\n \nIDM advised the Board that it decided to vacate its role as ASPL's Development Manager to avoid any perception of conflict between IDM's role as Development Manager and ICB's position as a substantial shareholder of ASPL. IDM has further explained to the Board that in a recent discussion with a significant shareholder of ASPL, IDM became aware that some shareholders might perceive ICB's interests in the divestment of ASPL's property portfolio not to be aligned with the other shareholders. \n \nUnless otherwise agreed, IDM's resignation is subject to a three months' notice period which will enable the orderly transition of operations currently carried out by IDM to ASPL itself or to third parties. Following the termination, IDM has indicated that it would be prepared to work with the Board to facilitate a smooth and orderly transition of the operations of ASPL. \n \nGiven that ASPL is currently in a divestment mode, the main executive functions are to ensure the maintenance, preservation and enhancement of the Company's assets pending their disposals. The Board will be deliberating on the various options available to it in managing the executive functions and administrative functions of ASPL including to identify a replacement for the Development Manager, to identify and appoint senior executives to oversee the operations of ASPL, and also to identify and appoint divestment specialists to lead the orderly disposal of the assets. \n \nThe Board expects to put in place and effect changes before the transition period expi...