RM1.7bil Maju Expressway deal crashes

KUALA LUMPUR: EP Manufacturing Bhd’s (EPMB) proposed purchase of the RM1.7bil Maju Expressway (MEX) has been terminated.
In
a filing with Bursa Malaysia yesterday, EPMB clarified that certain
conditions precedent to the acquisition agreement, including approvals
from relevant authorities, had yet to be obtained to date.
“In view of that, the vendors and Maju Expressway Sdn Bhd (MESB)
had informed EPMB of their intention to discontinue with the proposed
acquisition, and therefore, the parties have mutually agreed to
terminate the acquisition agreement,” EPMB said.
To recap, EPMB had on March 16, 2012 announced to Bursa Malaysia the proposed acquisition of MESB and its business from Bright Focus Sdn Bhd, which is part of Maju Holdings Sdn Bhd and Ulimas Sdn Bhd, for RM1.15bil.
In
addition to that amount, EPMB would assume MESB’s debt, totalling
RM550mil. Therefore, the total acquisition value stood at RM1.7bil.
The sale of the highway, however, hit a snag as Government approvals had yet to be obtained.