Friday, October 14, 2011

Jerneh Asia calls off Sabah deal

KUALA LUMPUR: Cash-rich JERNEH ASIA BHD [] has said its proposal to buy Sabah-based developer Sagajuta (Sabah) Sdn Bhd has been called off, as the parties could not reach a consensus on the terms of the proposed acquisition.

The announcement by Jerneh Asia on Friday, Oct 14 confirms a report by The Edge Financial Daily today that there was a possibility of a capital repayment to shareholders.

Jerneh Asia said it and Generasi Cipta Sdn Bhd had mutually agreed the memorandum of understanding the two had signed on April 21 this year in relation to the planned acquisition of Sagajuta.

The company said that as it had announced on May 24 and in a circular to shareholders, the company did not intend to regularise its PN16 and PN17 condition if the planned acquisition did not materialise.

'Consequently, the company intends to dispose its major assets, undertake a capital distribution to its shareholders and subsequently, wind up the company.

'The proposed asset disposals, capital distribution and winding-up are subject to shareholders' approval,' it said.

Trading in the securities of Jerneh Asia were halted from 9am today and would resume at 10am.

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