Annual Report 2012 - IOI Group

44. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR44.1 Acquisition of Oil Palm Plantation by Sri Mayvin Plantation Sdn BhdOn 28 July 2011, Sri Mayvin Plantation Sdn Bhd (“Sri Mayvin”), an indirect wholly-owned subsidiary of the Company enteredinto a conditional sale and purchase agreement (“SPA”) to acquire 11,977.91 hectares of oil palm plantation land located inthe Districts of Labuk-Sugut, Sandakan, Sabah (“Plantation Land”) from Pertama Land & Development Sdn Bhd (“PertamaLand”), a wholly-owned subsidiary of Duta Plantations Sdn Bhd, which in turn, is a wholly-owned subsidiary of DutalandBerhad (“Dutaland”) for a total cash consideration of RM830.0 million.On 9 November 2011, both Pertama Land and Sri Mayvin had entered into a Deed of Rescission to mutually rescind the SPAwith immediate effect whereupon the parties were released from all obligations and liabilities in connection with the SPAand neither party shall have further claim against the other in respect thereto. Following this, the deposit of RM83.0 millionearlier paid by Sri Mayvin pursuant to the terms of the SPA has been refunded together with all interest accrued thereon.44.2 Land Tender by Multi Wealth (Singapore) Pte Ltd (“Multi Wealth”)On 16 January 2012, Multi Wealth (Singapore) Pte Ltd (“Multi Wealth”), an indirect 99.8% owned subsidiary of the Companyhad been notified by the Housing & Development Board of Singapore of its acceptance of Multi Wealth’s tender bid for aparcel of land at Jalan Lempeng in the Republic of Singapore measuring approximately 24,417.6 square metres (equivalentto approximately 6.03 acres) (“Subject Land”) for a total tender sum of SGD408.0 million (equivalent to approximatelyRM995.5 million). The Subject Land with a lease period of 99 years is intended for residential development comprisingcondominium units.On 2 February 2012, Multi Wealth incorporated an 87.8% owned subsidiary known as Clementi Development Pte Ltd in theRepublic of Singapore to undertake the development of the Subject Land and to accept transfer of the ownership of theSubject Land.44.3 Establishment of USD1,500,000,000 Euro Medium Term Note ProgrammeOn 15 May 2012, the Company’s wholly-owned subsidiary, IOI Investment (L) Berhad (“IOI Investment”), a companyincorporated in the Federal Territory of Labuan under the Offshore Companies Act, 1990, established a Euro Medium TermNote Programme (“EMTN Programme”) with an initial programme size of USD1,500,000,000 (or its equivalent in othercurrencies).The EMTN Programme provides the Group a further avenue to tap into the liquidity of the international debt capital marketswith the flexibility to raise funds via the issuance of the notes from time to time with a tenor and in a currency to best matchits requirements.Subsequent to the establishment of the EMTN Programme, IOI Investment had on 27 June 2012 issued a USD600 million4.375% Guaranteed Notes due 2022 (“Notes”). The Notes are fully and unconditionally guaranteed by the Company and arelisted on the Singapore Exchange Securities Trading Limited.Annual Report 2012IOI CORPORATION BERHAD 249