Friday, July 1, 2011

Notion VTec sale talks fall through

KUALA LUMPUR: The controlling shareholders of Notion Vtec had abandoned negotiations to dispose of their business/equity interest after talks with the interested party fell through, just two weeks after it said negotiations were still on-going.

Notion VTec said on Friday, July 1 that it was informed by the controlling shareholders that 'they have terminated negotiations with the interested party due to disagreement over certain terms and conditions'.

'Notwithstanding the above, the company continues to receive indications of interest from various parties from time to time,' it said in a statement to Bursa Malaysia.

To recap, Notion VTec said in April that its controlling shareholders had been approached by a party indicating the intention to acquire the entire business/ equity interest.The company's core business is hard disk drive manufacturing, metal processing and designing.

The announcement was in response to an article in The Edge Financial Daily on April 11, 2011 with heading "Private Equity Eyes Notion Again?"

In a follow-up statement, Notion VTec said on June 20 that the board of directors were informed by the controlling shareholders that the negotiations were still on-going.

The main shareholders are Choo Wing Hong controlling 13.26%, his brother Choo Wing Onn with a 9.81% stake, and the Choo's brother-in-law Thoo Chow Fah with 10.37% equity.

Other substantial shareholders are Japan's Nikon Corp with a 9.07% stake in NotionVtec and pilgrim fund, Lembaga Tabung Haji, with a 6.18% shareholding.

Nikon Corp came into Notion Vtec as a strategic shareholder in January this year, purchasing a 10% block in the company via a private placement at RM2.44 per share or RM33.78 million.

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