The reason behind the drop was due to news saying IOI Corporation Berhad has terminated its proposed acquisition of almost 12,000 ha of oil palm plantation land from DutaLand Berhad. The deal costs RM830mil and was located in Sabah.
According to IOI Corporation Berhad, the cancellation was "due to non-compliance of certain terms and conditions". However, DutaLand Bhd has rejected the reasons for the cancellation of the deal.
If the deal is off, IOI Corp Bhd could lose a RM83 million deposit to Dutaland Bhd.
Even with the lost of RM83mil, the impact will be minimal to IOI's earning because IOI is a cash-rich company with profits of multi-billion Ringgit per year.
DutaLand Berhad is mainly involved in oil palm plantations, property development and property investments.
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