Kuwait bank out of property deal
The Malaysian unit of Kuwait Finance House has pulled out of a RM920 million (S$375 million) deal to buy part of an office tower from a local property developer.
Malaysia’s YNH Property Bhd told the stock exchange late on Tuesday that Kuwait Finance House Malaysia (KFHM) had informed it that the Kuwaiti bank would not proceed with the purchase.
YNH Property also said that it may seek legal damages from the Islamic bank.
No reasons were given for the pullout. Valued at about RM1.8 billion, the YNH tower was to be constructed in the Malaysian capital. YNH Property signed the deal with KFHB last year in January.
Malaysian rating agency RAM Ratings last month revised its outlook on the firm to negative from stable, citing a challenging operating environment in Kuwait that has pressured the credit fundamentals of its parent.
Kuwait Finance House has said that it is not exposed to the debt problems of Dubai state-owned conglomerate Dubai World or its property unit Nakheel.
YNH Property dropped 1.9 per cent to RM1.56 yesterday, the lowest close since June 2.
Source : Business Times – 17 Dec 2009
