Dynac’s planned IPO the reason of Goh Ban Huat’s RTO termination

PETALING JAYA: The termination of a reverse takeover (RTO) exercise involving Goh Ban Huat Bhd (GBH) is due to Dynac's plan to seek for an initial public offering (IPO) in its own stead rather than a back-door listing.
Last week, GBH's venture into the oil and gas fell through after the vendors, namely Datuk Abdul Rahman and Normala Mohd Sharif, aborted the memorandum of agreement (MOA) to proceed with the RTO exercise, which was to have seen GBH acquire the entire stake in Dynac for RM632 million.
According to a letter sent by the vendors dated October 8, Dynac is of the view that a listing through an IPO is more in line with its business strategy to focus on its existing business in the near future.
Dynac specialises in providing contract work, support products and services for the oil and gas industry.
GBH said it has no intention to pursue any legal action against the vendors as it has been stated that the MOA shall cease to have any further force or effect if a definitive agreement is not signed upon the expiry of the exclusivity period.
However, GBH revealed that it has to incur professional fees and other expenses of about RM1.6 million to date, which in turn will result in a decrease of about 0.9 sen in both the earnings and net assets per share, based on the unaudited six-month financial results ended June 30.
GBH's share price was down 2 sen to close at RM1.58 yesterday.