KUALA LUMPUR (Jan 15): MISC Bhd, the shipping arm of Petroliam Nasional Bhd (Petronas), has called off a RM250 million deal to dispose of its wholly-owned subsidiary MISC Integrated Logistics Sdn Bhd (MILS).
In a filing with Bursa Malaysia today, MISC (fundamental score: 1.6; valuation score: 1.8) said the proposed disposal had been terminated as the buyer, Golden Age Logistics Sdn Bhd (GAL) was not able to fulfill its obligations for completion as stipulated in the agreement for the sale and purchase of shares dated March 21, 2014 between the two companies.
However, it did not specify which condition was not fulfilled.
The conditions stated in the agreement included approvals from relevant regulatory authorities, letter of consent from MILS’ financiers or lenders, and letter of confirmation from Petronas.
"Accordingly, MILS will remain as a wholly-owned subsidiary of MISC going forward," MISC added.
GAL is a wholly-owned subsidiary of Utusan Printcorp Sdn Bhd.
MISC's share price retreated 9 sen or 1.16% to close at RM7.70, with a trading volume of 1.25 million, bringing its market capitalisation to RM34.77 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)