Mah Sing calls off acquisition of VIP Sanctuary

KUALA LUMPUR (Dec 11): Mah Sing Group Bhd said its proposed acquisition of privately-held VIP Sanctuary Sdn Bhd has fallen through, due to an unsatisfactory outcome of the due diligence exercise.

In an exchange filing yesterday, the property developer said its unit Mont Meridian Development Sdn Bhd “will not proceed with the proposed acquisition due to unsatisfactory result of the due diligence exercise”.

“The termination of the proposed acquisition will not have any effect on the net assets per share and earnings per share of Mah Sing group of companies,” read the filing.

To recap, in December 2015, Mah Sing announced that Mont Meridian had signed a conditional sale and purchase agreement with several parties for the proposed acquisition.

The acquisition of the entire equity interest in VIP Sanctuary — which holds a beneficial interest in the award-winning film entitled The Kid from the Big Apple — was for RM60,000 cash as part of the property developer’s efforts to raise funds for its foundation.

Mah Sing group managing director Tan Sri Leong Hoy Kum had then said that VIP's profits will be donated to the group's corporate social responsibility platform, Mah Sing Foundation.

Mah Sing’s share price closed one sen or 1.51% lower yesterday at 98 sen, valuing the group at RM2.38 billion. — theedgemarkets.com

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