KUALA LUMPUR (Sept 11): Hextar Industries Bhd’s (KL:HEXIND) RM177.48 million deal with Woodpeckers Group Sdn Bhd has fallen through after seven months.
In a bourse filing on Friday, Hextar Industries said the acquisition deal has been called off due to certain undisclosed conditions not being met as of the Sept 11 deadline.
The deal, originally made back on Feb 12, would have Hextar Industries acquiring a 51% stake in Woodpeckers Group, a master franchisee of the llaollao frozen yoghurt chain in Malaysia.
Due to rising energy and logistics costs from the Middle East conflicts, the deal was revised on June 23 to extend the profit guarantee period by one year while also amending franchise-related conditions.
The fertiliser and quarry equipment distributor has been making moves to expand into the food and beverage sector while exiting its fertiliser distribution operations, its core income contributor, this year.
Hextar Industries' share price remained unchanged at 27 sen upon closing on Friday, with a market capitalisation of RM741.8 million.