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Resources Prima confirms Chongqing property deal off the table
CATALIST-LISTED coal miner Resources Prima Group's bid to buy a property in China has fallen through, the board confirmed in an update on Friday night.
Its binding memorandum of understanding (MOU) to take over the 2,332 square metre commercial property in Chongqing lapsed at the end of 2018, when talks did not yield any definitive agreement, and there was no deal to extend the MOU period, said the board.
The talks failed because of, among other reasons, "the results of the scoping exercise not being satisfactory to the company", it added.
Resources Prima inked an MOU in September 2018 to buy a property development company from Hong Kong-based Hing Chung Group (International) for S$33 million in new shares.
It disclosed on Apr 29, 2019 that the MOU had lapsed, but said at the time that more details would be given "in due course".
The termination of the MOU will not have a material impact on the earnings and net tangible assets per share of Resources Prima for the year to Dec 31, 2019, the board said.