KUALA LUMPUR (Oct 22): BMS Holdings Bhd (KL:BMS) has terminated its proposed RM23.8 million land acquisition in Cheras after failing to reach an agreement with the vendor on the terms of the deal.
The vendor, Chyen Huat Hardware Sdn Bhd, has refunded the earnest deposit to BMS, the group said in a bourse filing on Thursday, adding that both parties will have no further claims against each other.
The Johor-based tile retailer said the mutual termination of the deal is not expected to have any material effect on its earnings, net assets or gearing for the financial year ending June 30, 2027 (FY2027).
Annnouncing the proposed acquisition two months ago, BMS said the land, which comes with a workshop and offices, was intended to support its business expansion.
Upon completion, the property was to be used as an operational facility comprising a retail showroom, office and storage space.
BMS, which was listed on Bursa Malaysia in December last year, closed half a sen or 3.85% lower at 12.5 sen on Thursday, valuing the group at RM193 million. Against its initial public offering price of 22 sen, the stock has fallen 43%.