PETALING JAYA (June 16): Hextar Technologies Solutions Bhd (HexTech) and Widad Group Bhd have mutually agreed to permanently terminate their proposed disposal of vacant freehold industrial land in Nilai, Negeri Sembilan, ending a transaction that had undergone multiple revisions and extensions since 2024.
In a Bursa Malaysia filing, HexTech confirmed that its subsidiary Guper Bonded Warehouse Sdn Bhd and Widad Development (Nilai) Sdn Bhd — formerly known as Widad Rail Sdn Bhd — had jointly agreed to cease all negotiations and terminate the conditional sale and purchase agreement (SPA) with immediate effect.
Both parties have also been released from all obligations, with no further claims or liabilities arising from the termination.
A Deal That Went Through Multiple Revisions
The transaction was first announced in September 2024 through a heads of agreement involving the proposed sale of five parcels of freehold industrial land in the Nilai Inland Port area, covering approximately 56,231 sq m.
Following an extension of the negotiation period in March 2025, a conditional SPA was signed in April 2025 for four of the original five parcels, valued at RM31.3 million. The deal was to be settled entirely via the issuance of 993.65 million new Widad shares at RM0.0315 per share.
At that stage, the structure would have made HexTech a significant shareholder in Widad with an estimated 23% equity stake in the enlarged share capital. HexTech had also anticipated a pro forma net gain of approximately RM25.97 million from the transaction.
However, the April 2025 agreement did not proceed to completion. By August 2025, both parties executed a deed of termination, citing changing economic conditions, but indicated an intention to renegotiate a revised agreement for the land sale.
Final Termination With No Replacement Plan
The latest filing in June 2026 marks a key shift, as the agreement is now fully terminated without any indication of further negotiations or replacement transactions.
Unlike the earlier termination, which suggested a potential restructured deal, this final agreement contains no language pointing to renewed discussions or future arrangements between the parties.
Impact on Both Companies
For HexTech, the termination removes the expected RM31.3 million disposal and the associated projected gain of RM25.97 million from its near-term financial outlook. However, the company stated that the termination is not expected to have a material impact on its earnings or net assets for the financial year ending March 31, 2027.
For Widad Group, the collapse of the deal halts its planned development of a commercial project on the 10.4-acre Nilai site, which had an estimated gross development value (GDV) of RM135.29 million. The project had previously targeted land conversion in the third quarter of 2026 and construction commencement in the second quarter of 2027.
With the termination now finalised, these development timelines will no longer proceed under the current arrangement.
Key Takeaways
This case highlights how corporate land transactions can evolve through multiple stages of negotiation, restructuring, and eventual termination. Even when agreements reach the SPA stage, external factors such as market conditions and strategic reassessments can still lead to collapse.
The final termination without a replacement agreement suggests a complete strategic withdrawal by both parties, rather than a temporary pause or renegotiation. For HexTech and Widad, this removes both expected financial gains and planned development timelines, underscoring the uncertainty often present in property-linked corporate transactions.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 16 Jun 26
Malaysia