Tuesday, October 11, 2011

United U-Li slumps 10.3% after sale to Legrand France aborted

KUALA LUMPUR: Shares of UNITED U-LI CORPORATION BHD [] fell as much as 10.3% to 73.5 sen on Tuesday, Oct 11 after its proposed sale of its units to Legrand France, SA was terminated.

At 3.44pm, U-Li Corp was down eight sen to 74 sen. There were 7.28 million shares transacted at prices ranging from 73.5 sen to 87 sen.

The FBM KLCI rose 15.21 points to 1,412.25. Turnover was 816.21 million shares valued at RM956.77 million. There were 564 gainers, 142 losers and 236 stocks unchanged.

U-Li Corp announced the MoUs to dispose of its units United U-Li (M) Sdn Bhd, United U-Li Steel Service Centre Sdn Bhd and Cable-Tray Industries (M) Sdn Bhd to Legrand France had been mutually terminated.

The termination was ahead of its expiry date of Nov 8.

'As such, all obligations of both the company and Legrand pursuant to the MoU shall be deemed null and void (except for the clauses in the MoU on confidentiality, costs and governing law and arbitration, which are specifically stated in the MOU to survive this termination),' it said.

U-Li Corp group managing director Datuk James Lee Yoon Wah said: 'Despite extensive negotiations and discussions, both parties were unable to agree on the definite terms of the proposal.'

He said although the proposals could not be completed, U-Li Corp's core business strategy remained intact.

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