KFH pulls out of Malaysia deal

The Malaysian unit of Kuwait Finance House has pulled out of a MR920 million (Dh991m) deal to buy part of an office tower from a property developer.

Malaysia's YNH Property told the stock exchange late on Tuesday that Kuwait Finance House Malaysia (KFHM) had informed it that it would not proceed with the purchase.

YNH Property also said it may seek legal damages from the Islamic bank.

No reasons were given for the pullout. A KFHM spokesperson said a statement will be issued later. Valued at about MR1.8 billion, the YNH tower was to be constructed in the Malaysian capital. YNH Property had signed the deal with KFHB last year in January.

Malaysian rating agency RAM Ratings last month revised its outlook on the firm to negative from stable, citing a challenging operating environment in Kuwait that has pressured the credit fundamentals of its parent.

Kuwait Finance House has said that it is not exposed to the debt issues of Dubai World or its property unit Nakheel, which have undermined investor confidence.

 

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.