Halex terminates MoU for Cambodian gaming business

by **Cals** Thu 03 Dec 2015, 23:36

Halex terminates MoU for Cambodian gaming business

By Supriya Surendran / theedgemarkets.com | December 3, 2015 : 9:51 PM MYT

KUALA LUMPUR (Dec 3): [size=16]Halex International Sdn Bhd, a subsidiary of Halex Holding Bhd, has terminated its Memorandum of Understanding (MoU) with Goh Teik Keng, the major shareholder of VW Win Holdings Plc, in relation to its proposed acquisition of at least a 51% stake in VW.

In its filing to Bursa Malaysia today, Halex said the company was not provided with complete documentation to enable it to carry out the requisite due diligence exercise as stipulated in the MoU, and as such, has decided to terminate the MoU.

To recap, Halex had on Sept 14 entered into the MoU to acquire the stake in VW Win, which currently operates a licensed lottery gaming business in Cambodia, and intends to apply for and operate an online gaming license in the kingdom.

The conditions stipulated in the MoU include Halex International receiving a written approval from the relevant authorities in Cambodia with regards to the proposed sale and purchase of the shares; completing a legal and financial due diligence on the business of VW Win; and obtaining shareholders’, Bursa Malaysia’s and Securities Commission Malaysia’s approval in relation to the proposed acquisition.

The MoU also stated that VW Win must obtain a valid online gaming licence in Cambodia.

Agrochemicals and healthcare disposable products manufacturer Halex saw its share price close 6.5 sen or 10.57% higher today at 68 sen, arriving at a market capitalisation of RM72.06 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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