KUALA LUMPUR: Kuwait Finance House (M) Bhd (KFHMB) yesterday said there is no legally binding agreement between it and YNH Property Bhd subsidiary YNH Land Sdn Bhd for its earlier proposed en bloc acquisition of one wing of the office tower in Menara YNH in Jalan Sultan Ismail here.

However, KFHMB appeared to have left the door open for renegotiations with YNH, saying “we may review our decision in the future should we be able to find a viable structure to enable us to participate in the sale transaction”.

YNH announced on Tuesday that it had been notified of KFHMB’s decision not to proceed with the formalisation of the sale and purchase agreement for the RM920 million transaction.

YNH said the company would consult its legal advisers on all of the options available to the group, including but not limited to specific performance and/or seeking damages from KFHMB.

ECM Libra Investment Research in a report yesterday said the news was not a surprise as “the partial sale of Menara YNH has been widely expected to fall through following a long and protracted negotiation since the letter of offer was signed on Jan 11, 2008” (See report on Page 10).

In its statement yesterday, KFHMB said a conditional letter of offer was executed between KFHMB and YNH but the sale and purchase agreement was not executed as the conditions stipulated in the letter, which include the approvals from KFHMB’s board of directors, shareholders and/or committees, were not obtained.

Thereafter, it claimed that the parties held several discussions and meetings towards agreeing on a revised structure so as to meet the approvals and the other conditions stipulated in the conditional letter of offer.

“As both parties were unable to agree on a revised structure and the terms of the sale, KFHMB has decided not to proceed with the purchase of the said Menara YNH,” KFHMB said