KUALA LUMPUR: Loss-making Kuantan Flour Mills Bhd (KFM) will have to find another white knight after the proposed reverse takeover by NEP Holdings (M) Sdn Bhd was scrapped.
It told Bursa Malaysia on Friday the corporate exercise by NEP Holdings (M) Sdn Bhd, which sells water filtration system products under the Diamond brand, was called off just two months after inking the proposal.
KFM had on Jan 21 signed the heads of agreement with NEP’s 99.9% owner Lim Chang Huat, which would have led to Lim emerging as the controlling shareholder of a new entity (newco) that would take over KFM’s listing status.
Under the proposal, the newco would acquire NEP for a purchase consideration to be determined later. The parties had also agreed t the newco shares to be issued to Lim as consideration for the proposed acquisition be fixed at 45 sen each.
On Friday, KFM announced the final date to execute the definitive agreement was March 20 and both parties had mutually agreed not to seek for a time extension. Hence the HOA terminated on Friday.
“The board of directors of KFM acknowledges the current financial position of KFM and will continue to actively identify new business ventures or assets to improve the financial performance of KFM in the long term,” the company added.
KFM made a net loss of RM3.16mil for the nine-month period ended Dec 31, 2014. The stock closed up 0.5 sen to 33 sen on Friday.
Flour miller Kuantan Flour Mills Bhd’s (KFM) proposed reverse takeover (RTO) exercise of water filtration systems provider NEP Holdings (M) Bhd (NEP) has been terminated, as both parties were not able to execute the definitive agreement by the agreed deadline.
Under the heads of agreement (HoA) between KFM (fundamental: 0.8, valuation: 0.6) and NEP signed in January 2015, both parties are obliged to execute a definitive agreement no later than two months from the date of the HoA or such other date as the parties may agree in writing.
KFM told Bursa today, it had decided not to seek for an extension of time to execute the definitive agreement and therefore had terminated the HoA.
I wonder how much it can still go down with market cap 20mil only... hehe.. I doubt the selling pressure in early or the month already reflect the news somehow.
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sampool
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Posted by sampool > 2015-03-19 09:26 | Report Abuse
base on the share performance for 5 yr.. even no success with the deal... the share price will no go down much ady...