KUALA LUMPUR (June 6): Property developer Yong Tai Bhd has applied for a fourth six-month extension to submit the draft circular for its proposed RM160 million disposal of Courtyard by Marriott Melaka, almost two years after the transaction was first announced.
In a filing with Bursa Malaysia on Friday, the company said it had yet to submit the shareholder circular as required under listing regulations before the current deadline of June 27, 2026. Yong Tai has now requested an extension until Dec 26, 2026.
The company has previously been granted three extensions by Bursa Malaysia Securities, on Oct 4, 2024, March 21, 2025, and Dec 19, 2025.
The proposed disposal was first announced in July 2024 when Yong Tai's wholly owned subsidiary, Apple 99 Development Sdn Bhd, entered into a sale and purchase agreement with Southern Envoy Sdn Bhd to sell the 248-room five-star Courtyard by Marriott Melaka hotel.
At the time, the hotel had been operating for slightly more than a year. The company planned to use the majority of the sale proceeds to reduce borrowings, while the remainder would be allocated for working capital purposes.
Legal Dispute Added Complexity to Disposal
The transaction faced complications in August 2024 when construction group Kerjaya Prospek Group Bhd, through its subsidiary, initiated legal proceedings against Apple 99 Development over an alleged outstanding residual contract sum of RM105.14 million.
However, in October 2025, the High Court ruled in favour of Apple 99 in two related applications. The court set aside an adjudication decision dated May 9, 2025, and dismissed Kerjaya Prospek's application to enforce the adjudication award.
Apple 99's directors have maintained that the legal claims are unlikely to materially affect the group's financial position, noting that the disputed amount has already been provided for in the company's financial statements.
Based on legal advice received, the directors believe Apple 99 has strong grounds to defend the claim, arguing that a supplementary agreement supersedes an earlier settlement agreement and that the demand notice issued by Kerjaya Prospek is invalid.
Financial Position Remains Challenging
Yong Tai returned to the red in the financial year ended June 30, 2025, after recording a profit in the preceding year.
For the third quarter ended March 31, 2026, the group's net loss narrowed to RM2.1 million from RM4.04 million a year earlier. Revenue, however, declined 18% to RM8.7 million from RM10.61 million.
As at March 31, 2026, Yong Tai carried total borrowings of RM210.84 million against cash and bank balances of RM8.03 million, resulting in a net debt position of RM202.81 million.
The company's shares last closed at 12 sen on June 4, giving it a market capitalisation of approximately RM65.6 million.
What We Learned
The repeated extension requests suggest that the proposed disposal of Courtyard by Marriott Melaka remains a critical but unresolved corporate exercise for Yong Tai. The transaction is particularly important because the RM160 million proceeds could significantly ease the group's debt burden, given its net debt of more than RM200 million.
Although the legal dispute with Kerjaya Prospek appears to have progressed favourably for Yong Tai, the prolonged delay in finalising the shareholder circular raises questions about the timeline and completion certainty of the disposal.
Investors should monitor Bursa Malaysia's decision on the latest extension request, as well as any updates on the sale process and the group's efforts to strengthen its balance sheet. Successful completion of the hotel disposal would likely be a major step towards improving Yong Tai's financial position and liquidity profile.
Malaysia