KUALA LUMPUR (Aug 21): Hextar Technologies Solutions Bhd (KL:HEXTECH) has terminated its proposed sale of four adjoining parcels of vacant freehold industrial land in Nilai Industrial Estate, Negeri Sembilan, to Widad Development (Nilai) Sdn Bhd for RM31 million as both parties are reassessing terms for a potential a new deal.
The deal, which was to be settled via share issuance by Widad Group Bhd (KL:WIDAD), has been called off following a mutual reassessment.
Under the initial agreement, Widad was to issue 993.65 million new shares at 3.15 sen apiece to Hextar Technologies, representing approximately 32% of Widad’s total share capital. However, with Widad’s current share price at 1.5 sen, the proposed issuance implied a steep premium.
Hextar Technologies said in a bourse filing the termination was prompted by recent economic developments that led both parties to re-evaluate the transaction and reidentify the parcels of land intended for sale. The decision was reached amicably, with no admission of fault or liability by either party.
Both parties have agreed to pursue a revised sale and purchase agreement for the newly identified land parcels, subject to mutual consent on updated terms, it added.
Shares in Hextar Technologies were up two sen or 1.7% at RM1.19 at the time of writing on Thursday, valuing the group at RM2.45 billion. Widad, meanwhile, traded at 1.5 sen per share, valuing the company at RM46.82 million.