Duty Free International Limited Announces Extension of Conditional Period for Joint Development Agreement

Key Highlights

• Joint Development Agreement (JDA): Duty Free International Limited (“DFIL”), through its wholly-owned subsidiary Kelana Megah Sdn Bhd (“KMSB”), entered into a conditional joint development agreement with Chin Hin Property (Stulang) Sdn Bhd (“CHPSSB”) on 10 September 2024, as supplemented by a letter dated 9 June 2025.
• Project Scope: The agreement concerns the proposed joint development of a leasehold land parcel (H.S.(D) 605698, Lot No. PTB 20379) in Bandar Johor Bahru, Daerah Johor Bahru, Negeri Johor, Malaysia. The land measures approximately 17,342 square meters (about 186,668 square feet).
• Conditional Period Extension: The original conditional period for fulfilling all conditions precedent was set to expire on 9 December 2025. As certain conditions were not fully satisfied by that date, both parties have agreed to extend the conditional period by an additional six months, now expiring on 9 June 2026.
• Further Extensions Possible: The parties have the option to mutually agree to further extend the conditional period beyond 9 June 2026, if necessary.
• Unchanged Terms: Apart from the extension, all other terms and provisions of the JDA remain in full force and effect.
• Ongoing Disclosure: DFIL has committed to making further announcements should there be any material developments or updates regarding the joint development project.

Important Information for Shareholders and Investors

• Project Uncertainty: There is no guarantee or assurance at this time that the proposed joint development will be completed, as the fulfillment of all conditions precedent is still pending.
• Caution Advised: Shareholders and potential investors are strongly advised to exercise caution when trading the Company’s securities, given the ongoing uncertainties associated with the project’s completion.
• Potential Price Sensitivity: The outcome and progress of this joint development agreement could significantly impact DFIL’s future growth prospects and financial performance. Any further extensions, fulfillment of conditions precedent, or material changes to the agreement may be price-sensitive events affecting the Company’s share value.
• Professional Advice Recommended: Investors who are uncertain about their next steps are encouraged to consult their stockbrokers, bank managers, solicitors, or other professional advisers.

Detailed Overview of the Announcement

On 9 December 2025, the Board of Directors of Duty Free International Limited announced the extension of the conditional period for its joint development agreement with Chin Hin Property (Stulang) Sdn Bhd regarding a significant real estate project in Johor Bahru, Malaysia. The JDA, initially signed on 10 September 2024 and supplemented on 9 June 2025, outlines the collaborative development of a strategically located leasehold land parcel spanning over 17,000 square meters.

The original conditional period required all precedent conditions to be satisfied by 9 December 2025. As some of these conditions had not been met by the deadline, both parties have now mutually agreed to a six-month extension, pushing the new deadline to 9 June 2026. This extension provides both DFIL and CHPSSB additional time to resolve outstanding matters and fulfill necessary requirements for the project to proceed.

Notably, the agreement allows for further extensions beyond June 2026 by mutual consent, providing flexibility for both parties to accommodate any unforeseen delays or complications. Aside from this extension, all other terms of the JDA remain unchanged and enforceable.

DFIL has assured shareholders and investors that timely updates will be provided on any material developments. However, the Company has cautioned that there is currently no certainty that the proposed joint development will materialize, and accordingly, market participants should remain prudent in their investment decisions.

Conclusion

The extension of the conditional period for the joint development agreement is a noteworthy development for Duty Free International Limited, as it pertains to a potentially significant asset in Johor Bahru. However, the completion and success of the project remain uncertain and contingent upon the fulfillment of all conditions precedent and possible further approvals or extensions. Investors should closely monitor future announcements, as the resolution or failure of this project could have material implications for the Company’s valuation and strategic direction.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors are urged to conduct their own due diligence and consult with professional advisers before making any investment decisions related to Duty Free International Limited.

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