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CPH calls off reverse takeover
CPH'S plans to acquire a fintech firm in a reverse takeover have been called off, the Catalist-listed printed circuit board (PCB) maker announced on Thursday night.
"The group will continue to contain its operating losses and consider all options to diversify from its PCB business," said CPH. "The company will keep shareholders informed of any material developments in this regard, as and when appropriate."
On Nov 22, 2018, CPH had signed a conditional sale and purchase agreement to acquire fintech solution provider oCap Management from Delphinium Capital for S$61.8 million, to be satisfied by the issuance of more than five billion new CPH shares at 1.2 Singapore cents apiece.
Delphinium, an investment company with a fintech and regulated financial services assets portfolio, would then have become CPH's single largest shareholder with a 80.34 per cent stake.
On Thursday, CPH said that it, Delphinium and oCap had been "collaborating and working towards the proposed acquisition". But following discussions, they mutually agreed to terminate the transaction as it was unlikely that "certain key conditions" of the agreement would be fulfilled by the long-stop date of Aug 21, 2019.
The parties have entered a deed of termination dated May 30, in which the sale and purchase agreement will be terminated with effect from that date, and with the cessation of each party's respective obligations and liabilities.
As CPH envisages that it will not be bearing any costs in relation to the transaction, the termination of the proposed acquisition is not expected to have any material adverse impact on CPH's consolidated net tangible assets or earnings per share for the financial year ending March 31, 2020.
CPH shares closed unchanged at 0.8 Singapore cents on Thursday before the news.