KUALA LUMPUR (Aug 4): Farm Price Holdings Bhd’s (KL:FPHB) planned acquisition of a Johor-based grocer has hit a legal snag with a court order barring the sale of some of the assets.
An interim injunction order dated July 24 prevented Hong Yun Vegetables & Fruits Sdn Bhd from selling its assets worth up RM849,376.07, Farm Price said in an exchange filing. The company received notice of the injunction from Four Season Vege Sdn Bhd on the evening of Aug 1, it said.
“The company is in the process of seeking legal advice,” the company said.
The relationship between Hong Yun and Four Season as well as the details of the complaint were not disclosed in the filing.
Farm Price had in June proposed to acquire Hong Yun’s grocery wholesale and retail business along with assets such as furniture and fittings and factory equipment for RM3.9 million.
The acquisition, if it goes through, will broaden Farm Price’s supply chain with new product offerings, the company said back then. The move is also aimed at expanding its customer base in the food services sector across Malaysia and Singapore, Farm Price added.
Shares in Farm Price, which was listed on the ACE Market in May last year, were traded one sen or 2.63% higher at 39 sen at the time of writing on Monday, valuing the company at RM175.50 million.