Procurri scraps US$115m deal talks for business unit

DISCUSSIONS over the sale of Procurri Corporation's third-party hardware maintenance business have been called off, as the final price and deal structure could not be agreed on.

Procurri and the potential buyer, Park Place Technologies, have mutually agreed to terminate further discussions, the mainboard-listed enterprise hardware supplier said in a regulatory update on Wednesday before the market opened.

Procurri has also provided written notice to Park Place that the exclusivity period for the deal would not be extended beyond 11.59pm New York City time on Tuesday.

Last November, Procurri announced it had accepted a non-binding letter of intent from Park Place, a third-party maintenance company, which was looking to buy the business unit for US$115 million in cash. An exclusivity agreement until Dec 31, 2019 was also inked, subject to three 15-day extensions.

Procurri shares were trading at S$0.38 as at 9.41am on Wednesday, down six Singapore cents or 13.6 per cent, after the announcement was made.