TWL Holdings Bhd has provided additional information to Bursa Malaysia regarding the mutual termination of three joint venture agreements (JVAs) involving its wholly owned subsidiary, TWL Builders Sdn Bhd, and its project partners Pentas Irama Sdn Bhd, Elitprop Sdn Bhd and Greatprop Development Sdn Bhd.

According to the company's clarification, each JVA required TWL Builders to complete the respective development projects within two years from the approval of the layout plans or by an agreed extended completion date. However, all three projects remained incomplete after the extended deadlines had expired, resulting in the mutual termination of the agreements.

As part of the original arrangements, TWL Builders had paid RM600,000 to each of the three counterparties, amounting to a total of RM1.8 million. Following the termination agreements signed on June 29, 2026, the counterparties are required to refund the full amount by June 28, 2027.

The company explained that the 12-month repayment period was mutually agreed upon after considering the counterparties' financial obligations and cash flow positions. The agreements do not impose penalties or interest for late repayment. If the refund is not made by the agreed deadline, both parties may negotiate an extension in writing. Otherwise, TWL Builders reserves the right to pursue legal remedies available under the agreements and applicable laws.

TWL also disclosed that all development expenses previously incurred under the projects had been reimbursed by the respective counterparties. These reimbursements amounted to approximately RM4.86 million for the Pentas Irama project, RM11.19 million for the Elitprop project and RM3.93 million for the Greatprop project.

In addition, the company outlined that various development-related approvals, including development orders and land conversion approvals, had been obtained during the course of the projects before the joint venture agreements were eventually terminated.

Key Takeaways

• TWL Holdings has clarified the mutual termination of three joint venture agreements after the projects were not completed within the agreed extended timelines.
• TWL Builders is entitled to receive RM1.8 million in refunds, representing RM600,000 paid to each of the three joint venture partners.
• The counterparties have until June 28, 2027 to repay the outstanding amounts.
• No penalties or interest will be charged for delayed repayment, although TWL may pursue legal remedies if repayment is not made and no extension is agreed.
• Development costs incurred by TWL Builders have already been reimbursed, totalling approximately RM19.98 million across the three projects.
• The clarification provides greater transparency on the financial implications of the terminated joint ventures while confirming that key development approvals had been secured before the projects were discontinued.