A Malaysian property firm has escalated a stalled acquisition deal to court, demanding millions in damages after alleged breaches by the sellers. Jiankun International Bhd filed legal action against two directors of Oriental Link Properties (M) Sdn Bhd for failing to transfer shares tied to a RM9.5 million purchase agreement signed in late 2023.
The dispute centers on a deal where Jiankun agreed to acquire a 99.99% stake in Oriental Link, a move intended to expand its footprint in Penang’s property market. Despite paying RM3.5 million upfront, the company claims the sellers imposed unexpected conditions, delaying the transaction and forcing legal intervention. Jiankun now seeks RM12 million in damages and a court order to enforce the share transfer.
Court documents reveal Jiankun’s additional demands, including a refund of the initial payment if the deal collapses. The lawsuit also aims to block the defendants from selling or mortgaging Oriental Link’s assets—three key development projects in Nibong Tebal and Bayan Lepas—until the case concludes. These projects include residential and commercial properties with significant development potential.
The case’s first hearing is set for May 2025, nearly two years after Jiankun announced the acquisition as part of its strategy to revive its financial performance. The company had positioned the deal as a gateway to new revenue streams in northern Malaysia, where Oriental Link holds several high-value projects. The outcome could set a precedent for similar disputes involving delayed corporate acquisitions in the region.