Altan Holdings Berhad has announced that it has received official notifications, Forms E and F under the Land Acquisition Act, regarding the compulsory acquisition of land currently owned by its wholly-owned subsidiaries, Cergasjaya Sdn. Bhd. and Cergasjaya Properties, in Kedah. The acquired lands have been gazetted as commercial property under the Free Zone Act 1990.

The acquisition, initiated by the Ministry of Home Affairs Malaysia and administered by the Department of Director General of Lands & Mines Kedah (Pejabat Pengarah Tanah dan Galian Negeri Kedah, or "PTG Kedah"), is intended for a road construction project. The new road will connect the Bukit Kayu Hitam ICQS Complex in Kedah to the CIQ Sadao facility in Thailand, a critical development for cross-border transportation.

Altan Holdings stated that Cergasjaya, the owner and operator of the Duty-Free Complex in Bukit Kayu Hitam, has been engaged in retail operations at the site since 1988. Meanwhile, Cergasjaya Properties (CPPA) holds leases for three plots of land within the area, which have been designated as a Free Zone since 1996.

The group expressed concerns about the impending closure of its duty-free business at Bukit Kayu Hitam due to the land acquisition. This division has been a significant contributor to Altan's financial performance, accounting for approximately 24% of the company's revenue, according to its latest audited financial statements for the fiscal year ending on 29 February 2024.

While the inquiry process for determining compensation is still ongoing, Altan Holdings has indicated that it will be represented by its legal advisors to ensure fair and adequate compensation, in line with protections guaranteed by the Federal Constitution.

The closure of the duty-free complex will mark the end of an era for Altan Holdings' business operations in the region, raising questions about the company's future strategy in light of this compulsory acquisition.