The Perak State Development Corporation subsidiary has initiated selling of its stake in Nexusbase Development Sdn Bhd back to the vendor at the original purchase price of RM12.5 million, according to its Bursa Malaysia filing.

Majuperak has given notice of the invocation of share repurchase to the vendor, Sloane Infinity Asia Pacific Sdn Bhd, and Sloane’s shareholder Lee Seng Khoon. Sloane Infinity is primarily involved in investment holding.

“As the vendor has failed to achieve the required 50% sales of the units, this property development project’s impact to the regularisation plan is untenable resulting in Majuperak running out of options, and in the best interest of the company, opt to exercise its right for the vendor and its major shareholder to repurchase the shares acquired,” the filing said.

Majuperak said after acquiring the stake in January 2021 that it offered the group the potential to generate future revenue streams from Nexusbase’s project activities.

Under the notice, Majuperak is seeking a reimbursement of RM6.5 million in cash, which was initially disbursed to the vendor, along with the cancellation and return of the promissory note worth RM6 million.

The group expects the share repurchase to be completed by the fourth quarter of 2023.

Nexus Residence has a gross development value of RM121.68 million, with construction commencing in the third quarter of last year and expected to be completed in the third quarter of 2025.

Majuperak was incorporated as a subsidiary of Perbadanan Kemajuan Negeri Perak (PKNPK) in 1976 with the goal of bringing socio-economic development to Perak.

At the close of trade, Majuperak’s share price was 31 sen, down 2.5 sen or 7.46%, giving the group a market capitalisation of RM86.87 million.