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Metal Component Engineering terminates agreement to acquire stake in Asiafame Group
Metal Component Engineering has terminated its sale and purchase agreement to acquire a 51 per cent stake in Asiafame Group.
In a filing to the Singapore Exchange on Sunday, it said that some of the conditions for the proposed acquisition could not be fulfilled or waived by mutual consent of the parties by the long-stop date of Aug 31, and no further extension of time was agreed to by the parties. It does not expect to bear any costs in relation to the termination.
In February, it announced it had entered into an agreement to acquire 51 per cent of Asiafame Group for around S$8.4 million. The sellers are World Forum Development Limited and Gold Paradise International Limited.
Metal Component said: "The group will continue to explore potential and suitable acquisitions, joint ventures and strategic alliances, which generate sustainable revenue streams for the group and represent a strategic diversification strategy for the group towards improving its financial performance and position over a longer term." With additional reporting by Jamie Lee