Matang-Scope deal finally called off

by **Cals** Tue 09 Sep 2014, 02:23

Business & Markets 2014

Written by Liew Jia Teng of theedgemalaysia.com

Monday, 08 September 2014 21:23

KUALA LUMPUR (Sept 08): Matang Holdings Bhd’s long-stalled plan to inject plantation assets into ACE-Market listed Scope Industries Bhd has finally been called off.

In a filing with Bursa Malaysia today, Scope Industries announced that the extension of time granted by Bursa Malaysia up to Sept 06, 2014, to complete the proposed merger of its businesses with Matang’s has lapsed.

“As set out in the announcement dated May 19, 2014, the conditions precedent of the business merger agreement dated Nov 19, 2012 have not been fulfilled on May 18, 2014, being the extended cut-off date, and accordingly the timeframe to fulfill such conditions have lapsed,” said Scope Industries.

In accordance to the terms of agreement, Scope had on Sept 08, 2014, notified Matang of the termination of the business merger agreement, with no further claims against each other.

Scope Industries are involved in the trading and manufacturing of electronic components, as well as in the oil palm plantation business.

Matang, a non-listed outfit with a majority of its shareholders being members of MCA Johor, had planned to inject its more-than 2,000 acres of oil palm plantation in Segamat, office lots plus RM25 million cash into Scope Industries, in return for RM145 million worth of shares in the latter.

The deal was proposed in November 2012, but was met with criticism due to valuation issues. Under the proposed exercise, the individual shareholders of Matang would become shareholders of Scope Industries.