KUALA LUMPUR (March 17): Electronic manufacturing services (EMS) player EG Industries Bhd has aborted the S$3.8 million (RM 11.36 million) acquisition of 10.75 million shares, representing a 95.81% stake in Singapore-based printed circuit board supplier Singyasin Holdings Pte Ltd.

In a filing with Bursa Malaysia today, EG said after due consideration, the company and vendors reached the consensus for mutual termination of the proposed acquisition, and both parties had signed a deed of termination today.

The company added that the termination will allow it to focus on its expansion plans, which include the purchase and upgrade of machinery located at its existing production facility in Sungai Petani, Kedah.

EG said it also has expansion and upgrade plans for its factory in Sungai Petani, which consists of construction of a new factory building and warehouse, in addition of tools and equipment, as well as purchase of furniture and fittings and facilities such as computer equipment, software and air-conditioning.

The company will also be focusing on expanding its product offerings and customer base, particularly in the box-build segment, it said.

EG said the termination will not have any effect on its earnings for financial year ending June 30, 2016.

To recap, EG had on April 21 last year announced it is expanding its market reach by entering a sale and purchase agreement to acquire Singyasin, and had said then that the acquisition would allow the company to leverage on Singyasin as a sales and marketing arm to serve clientele and international procurement offices in Singapore, Thailand and the southern region of Malaysia.

The purchase was deemed as a related party transaction, as EG Industries chairman and executive director Terence Tea Yeok Kian is the controlling shareholder of Singyasin.

Trading in EG’s shares were halted for an hour today, from 9.41 a.m. It resumed trading at 10.41 a.m.

At 10.48 a.m, its shares were unchanged at 89.5 sen, with a market capitalisation of RM191.2 million.