Shanaya Limited has announced a significant update regarding its previously disclosed joint feasibility study with Zym-Tec Road Technologies Limited (“ZTR”). The company has entered into a formal deed of mutual termination, discharge, and release with ZTR, effectively ending the agreement related to the feasibility study. This decision follows the failure to obtain a satisfactory feasibility and financial report from ZTR, meaning the project and any related joint venture have not progressed and will not be undertaken.

Key Points from the Announcement

• Termination of Agreement: Shanaya Limited and ZTR have mutually agreed to terminate the feasibility study agreement, with both parties released from all obligations and liabilities under the agreement.
• No Joint Venture Formed: Despite initial plans, no joint venture company (JVC) has been incorporated, and the contemplated transactions have not advanced.
• Financial Impact: The company had previously warned that participation in the feasibility study could have a material adverse impact on earnings per share or net tangible assets per share if certain expenses incurred by SES (a group subsidiary) were deemed non-recoverable. However, the expenses were funded from a received deposit which will not be refunded to the subscriber. Therefore, the termination is not expected to have a material adverse impact on the consolidated net tangible assets per share or earnings per share for the financial year ending 31 December 2025.
• Strategic Direction: The Group will continue to seek other potential strategic co-operations, partnerships, and joint ventures to enhance its operations, suggesting that management remains committed to growth and diversification.
• Shareholder Advisory: Shareholders and potential investors are urged to exercise caution in trading shares and are advised to read all related announcements carefully. Consultation with professional advisors is recommended if there are doubts about any action to be taken.
• Regulatory Review: The announcement was reviewed by the Company’s sponsor, PrimePartners Corporate Finance Pte. Ltd., but not by the Singapore Exchange Securities Trading Limited (SGX-ST), which assumes no responsibility for the contents.
• Previous Announcements: Shareholders are encouraged to refer to the company’s earlier announcements and circulars from 28 February 2025 through 21 October 2025 for further details on the deposit and related expenses.

Important Considerations for Shareholders

• The termination of the agreement removes uncertainty related to the project and its impact on Shanaya Limited’s financials for FY2025.
• Although the project will not move forward, the financial risk to the company is limited due to the manner in which expenses were funded.
• The company’s continued search for strategic partnerships and joint ventures could present future opportunities or risks, so shareholders should monitor developments closely.
• This update is potentially price-sensitive, as it clarifies the outcome of a previously uncertain and possibly material event. The lack of material adverse financial impact may provide reassurance to investors, but the abandonment of a potential growth initiative could also affect market sentiment.

Management Statement

“The Group will continue to explore other potential strategic co-operation, partnerships and joint-venture opportunities with a view to enhance the operations of the Group.” – Mohamed Gani Mohamed Ansari, Executive Director and Chief Executive Officer, Shanaya Limited

Shareholder Warning

Shareholders and potential investors are advised to exercise caution when trading shares of Shanaya Limited and to consult professional advisors regarding their investment decisions.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. Investors should read all related company announcements and consult with professional advisors before making investment decisions. The Singapore Exchange Securities Trading Limited assumes no responsibility for the contents or accuracy of this article.

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