FBG Holdings Bhd said its wholly-owned subsidiary, FBG Land Sdn Bhd, has notified the Penang Development Corporation (PDC) of its intention to amicably cease collaboration and reach an orderly conclusion to the proposed Medi-City development in Batu Kawan, Penang.
The turnkey contractor and property developer said FBG Land has initiated discussions with PDC on the appropriate arrangements for concluding the existing collaboration.
The discussions remain ongoing, with both parties working towards an appropriate outcome in accordance with the existing agreement, FBG said in a statement.
FBG added that it would provide further updates through the appropriate corporate announcements should there be any material developments.
The group said its decision was part of a disciplined approach to capital allocation, with plans to redeploy capital towards other construction projects and property development opportunities.
According to FBG, the redeployment is intended to focus its resources on opportunities that are aligned with the group’s business objectives and long-term growth strategy.
