Share
PETALING JAYA (June 16): Hextar Technologies Solutions Bhd (HexTech) and Widad Group Bhd have permanently terminated their proposed disposal of vacant freehold industrial land in Nilai, Negeri Sembilan, with both parties releasing each other from all further obligations — and this time with no stated intention to renegotiate.
In a Bursa Malaysia filing today, HexTech said its wholly owned subsidiary Guper Bonded Warehouse Sdn Bhd (GBWSB) and Widad Development (Nilai) Sdn Bhd — formerly known as Widad Rail Sdn Bhd, a wholly owned subsidiary of Widad Group — mutually agreed today to terminate the conditional sale and purchase agreement and cease all further negotiation and discussion in respect of the proposed disposal.
Neither party shall be under any further obligation or claim against the other as a result of the termination.
A transaction with a long and interrupted history
The deal's origins trace to September 2024, when HexTech first disclosed a heads of agreement with Widad for the sale of five adjoining parcels of vacant freehold industrial land totalling approximately 56,231 sq m within the Nilai Inland Port area in Bandar Nilai Utama.
After an extension of the negotiation period in March 2025, a conditional SPA was signed in April 2025 covering four of the original five parcels at a disposal consideration of RM31.3 million, to be settled entirely through the issuance of 993.65 million new ordinary shares in Widad at RM0.0315 per share.
The structure would have made HexTech the largest shareholder in Widad at approximately 23% of the enlarged share capital, with HexTech expecting to record a pro forma net gain of approximately RM25.97 million.
That April 2025 SPA did not survive to completion. In August 2025, both parties executed a deed of termination, citing recent economic changes that led them to reassess the transaction and reidentify the land parcels intended for sale.
Critically, that August 2025 termination was explicitly framed as a precursor to a new agreement — both parties acknowledged and agreed that a new sale and purchase agreement would be entered into under revised terms to be negotiated.
The June 2026 filing terminates that subsequent revised agreement. Unlike the August 2025 Deed of Termination, the June 2026 announcement contains no language indicating any intention to pursue further negotiation or a replacement transaction. The absence of that language marks a material shift in tone from the prior termination.
What it means
For HexTech, the final termination removes a RM31.3 million monetisation event and the associated pro forma gain of approximately RM25.97 million from its near-term financial outlook. The company has stated the termination is not expected to have any material effect on its earnings or net assets for the financial year ending March 31, 2027.
For Widad, the deal's collapse halts a plan to develop a commercial property project with an estimated gross development value of RM135.29 million on the 10.4-acre Nilai site, including a targeted land conversion in the third quarter of 2026 and development commencement in the second quarter of 2027.
Both of those timelines now lapse with the transaction.
The announcement discloses no financial consequences — no penalty payments, break fees or deposit forfeitures are mentioned — though the full terms of the SPA have not been published and the filing alone cannot confirm whether such provisions existed.
..........
Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!
