KUALA LUMPUR (April 4): Seacera Group Bhd has cancelled its plan to acquire a 70% stake in construction and civil engineering firm Teras Sari Resources Sdn Bhd, shortly after announcing it on Feb 22.
"On behalf of the board, KAF Investment Bank wishes to announce that the company and the vendors had, via exchange of letters dated April 3, and April 4, 2018, mutually agreed to terminate the share sale agreement (SSA)," its bourse filing read today.
On Feb 22, the group announced that its wholly-owned unit Seacera Builders Sdn Bhd signed a heads of agreement to acquire the stake from LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd.
Seacera had said it would pay RM35 million for the stake, via the issuance of 35 million new Seacera shares, at an issue price of RM1 each.
Teras Sari had been awarded a roadwork contract worth RM338.14 million from the Public Works Department (JKR) in February. The contract is for the upgrading of the federal road from Bandar Pekan to Kampung Sungai Miang, Pekan and is valid for four years from March 1.
"Pursuant to the termination of the SSA, the proposed acquisition is aborted and neither party shall have any claims whatsoever against each other," the group said.
Seacera closed two sen or 3.23% lower at 60 sen today, for a market capitalisation of RM225.17 million. — theedgemarkets.com
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