KUALA LUMPUR (Aug 22): Metro Healthcare Bhd (KL:METRO), a specialist in fertility, obstetrics, and gynaecology services, has called off its proposed RM9.5 million acquisition of a four-storey shop office in Subang Jaya, Selangor.
The acquisition, undertaken by its wholly owned subsidiary KW Tee Sdn Bhd (KWT), was intended to support the group’s strategic expansion of its obstetrics and gynaecology services. The 12,176 sq ft property is currently tenanted and operating as a private maternity hospital, and was seen as a key asset in Metro's future growth plans.
However, the group announced that the deal was terminated after the seller, Summer Healthcare Sdn Bhd (SHSB), failed to fulfil its obligations under the sale and purchase agreement (SPA) signed in February. Specifically, SHSB did not remit the outstanding differential sum between the redemption sum and the balance purchase price within seven days of being notified by KWT’s solicitors.
KWT issued a termination notice to SHSB on Thursday, Aug 21, demanding an immediate refund of the RM665,000 earnest deposit, along with full reimbursement of all costs and expenses incurred in connection with the SPA. With the termination, the SPA is now deemed cancelled, discharged, and of no further effect.
In a filing with Bursa Malaysia on Friday, Metro said the termination will not have any material effect on the group’s share capital, substantial shareholders’ shareholdings, net assets per share, gearing, or earnings per share for the financial year ending Dec 31, 2025.
"The termination is not subject to the approval of shareholders or any regulatory authorities," it added.
At the midday trading break on Friday, Metro shares closed unchanged at 22.5 sen, valuing the group at RM220.3 million.