TransOcean aborts RM140m purchase of haulage firm

TransOcean Holdings Bhd has aborted its RM140 million acquisition of container haulage firm Taipanco Sdn Bhd, citing "non-fulfillment of conditions precedent" in its agreement with the vendor.

However, its Bursa Malaysia filing announcing the issue did not specify which conditions precedent were not fulfilled, only that the share sale agreement (SSA) inked on March 14 for the purchase has been terminated.

"The PGA (profit guarantee agreement), which is conditional upon the completion of the SSA, has also been terminated on even date," it said.

When the acquisition was proposed, Transocean said the purchase should enable it to revitalise its business and improve its lacklustre financial performance, which has deteriorated over the past four years.

The acquisition, which was to be satisfied via the issuance of new TransOcean shares and redeemable convertible preference shares (RCPS), would have resulted in TransOcean executive chairman Tan Sri Dr Mohd Nadzmi Mohd Salleh relinquishing the majority stake in the company, as it would lower his equity from 65.16% to 18.68%.

TransOcean shares did not trade today. It was last traded at 67 sen on Sept 27, which gave it a market capitalisation of RM27.47 million.

Source : http://www.theedgemarkets.com

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