Connectcounty terminates RM25m acquisition

PETALING JAYA: Connectcounty Holdings Bhd (Connect) has terminated the proposed acquisition of an electrical, mechanical and telecommunication contractor Kejuruteraan Asastera Sdn Bhd (KASB) for RM25 million, without giving a reason for it.
In a filing with Bursa Malaysia, the company said that it has also aborted plans for a rights issue to fund the deal given the termination of the deal and current market sentiment.
Connectcounty and the vendors agreed to terminate the proposed acquisition with no further claims being made from both parties.
"In light of the termination coupled with the current market sentiment, the board wishes to revisit the company's fund raising exercise. Premised on the above, on behalf of the board, M&A Securities wishes to withdraw the listing application of the proposals," M&A said on behalf of the group in a filing with the stock exchange.
In January, Connectcounty signed a heads of agreement with Lai Keng Onn and Choong Gaik Seng for the proposed acquisition of KASB.
The move would have seen Connectcounty diversify to include electrical, mechanical and telecommunication (M&E) engineering contracting as its core business.
The acquisition plans came with a proposed rights issue of up to 801 million new irredeemable convertible preference shares (ICPS) at an issue price of 5 sen per ICPS on the basis of three ICPS for every one existing ordinary share of 10 sen each held in Connect.